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Qualcomm signs up to $12bln deal with China’s top smartphone brands
The high-stake visit of US president Donald Trump to China has recorded positive results today as the US smartphone chip maker Qualcomm announced non-binding memoranda of understanding (MoU) with three of China’s top smartphone makers: Xiaomi, OPPO and vivo.
Each of the companies expressed a non-binding interest in the purchase of components with an aggregate value of no less than $12 billion over the next three years, according to a company statement.
China’s smartphone makers have been gaining momentums over the past few years not only in domestic but also the global market. Along with the trend, smartphone chip industry is has seen strong growth in the country. The world’s top chip maker Qualcomm earns more than half of its revenues in China.
Meanwhile, Chinese phone companies are also looking to have more control over their own hardware. It’s worth noting that Xiaomi was reportedly developing smartphone processors on its own early this year.
“Qualcomm has longstanding relationships with Xiaomi, OPPO and vivo and we are continuing our commitment to investing and helping advance China’s mobile and semiconductor industries,” said Steve Mollenkopf, chief executive officer, Qualcomm Incorporated.
Qualcomm’s rival Broadcom offered a $105 billion buyout bit earlier this week. Tighter partnership with Chinese manufacturers may ease the pressures resulted from the lengthy legal battle with Apple Inc. over patent fees.