US chip giant Intel has ceased cooperation with Unisoc, a state-owned mobile chipmaker, following ongoing tensions between the world’s two largest economies and coming less than a year after the deal was announced.

The partnership was dissolved amid concerns that the technology transfer could cause problems in Washington, according to Nikkei, citing sources familiar with the situation. The deal between the two chipmakers was announced at the Mobile World Congress in February 2018.

The two companies planned at the time to jointly deliver a 5G smartphone solution leveraging Intel’s modem expertise that would roll out to the market in 2019. Intel was supposed to share its latest XMM 8000 series of 5G commercial multi-mode modems with Unisoc, China’s second-largest chip manufacturer, as large-scale 5G networks projects are constructed across the country.

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Jill Shen

Jill Shen is Shanghai-based technology reporter. She covers Chinese mobility, autonomous vehicles, and electric cars. Connect with her via e-mail: jill.shen@technode.com or Twitter: @yushan_shen