Qualcomm China, Jianguang Asset Management (JAC Capital), Leadcore and Wise Road Capital have signed an agreement to form a joint venture called JLQ Technology, which will focus on the design, packaging, testing, customer support and sales related to chipsets for mass-tier smartphones designed and sold into China.
This joint venture will combine Qualcomm’s advanced technology, scale, product portfolio with Leadcore’s accomplished R&D capability as well as deep relationships in China. JAC Capital’s wide connections in Chinese financial circle, and Wise Road Capital’s financial and industry eco-system resources home and abroad.
“This joint venture represents the organic combination of financial and industry resources of Qualcomm, JAC Capital, Datang Telecom, and Wise Road Capital, the synergy of which is advantageous to local technology innovation,” said Brighten Li, chairman of investment evaluation committee, JAC Capital. “It also represents an important step for JAC Capital as an eco-system player in the global semiconductor industry.”
“With China’s growing consumption of consumer chipsets and a well-developed smartphone eco-system, this joint venture will be well-positioned to tap into the growing consumer demand in China,” said William Sun, general manager, JAC Capital. “We believe the establishment of this joint venture in IC design will be beneficial for consumers and boosting China’s IC design industry.”
Cristiano Amon, executive vice president of Qualcomm Technologies and president of QCT, said the JV would help Qualcomm expand its presence to new segments and customers.
JLQ Technology will be registered in Gui’an New Area in Guizhou Province. Formation of the JV is subject to the approval by relevant authorities. The parties currently anticipate that it will be completed later this year.