Qualcomm Inc. has entered a joint venture with the Chinese province of Guizhou to design and sell advanced server chipsets in China.
Qualcomm (Nasdaq: QCOM) will have a 45 percent stake in the partnership, announced Jan. 17 in Beijing. The provincial government will have 55 percent ownership.
The joint venture, initially having $280 million worth of capital, will be called Guizhou Huaxintong Semi-Conductor Technology Co. Ltd.
Qualcomm is providing investment capital and is licensing its server technology to the joint venture.
The partners said Guizhou, in southern China, is an important base for the development of the big data industry and will include a green data center cluster of more than 2.5 million servers for companies including China Telecom, China Unicom and China Mobile.
Qualcomm previously announced it wanted to increase its investments in China.
In a post on the Seeking Alpha website, blogger and electrical engineer Mark Hibben said the move could be an example of “how Intel eventually could be toppled from its data center dominance.”
The San Diego company plans to announce quarterly financial results on Jan. 27.