Qualcomm’s proposed joint venture with Datang Telecom and Beijng Jianguang Asset Management (JAC) to manufacture chipsets in China has received a greenlight from China’s antitrust regulator, the Wall Street Journal reported, citing sources. The joint venture was announced in May 2017. Qualcomm said at the time that Tatang and JAC would together hold a majority share of over 50 percent, with Qualcomm as the tech support. Wise Road Capital is also involved.
The sources said that the idea would be for the joint venture to compete against companies producing processors for low-cost smartphones, including China’s Spreadtrum Communications, owned by Tsinghua Unigroup. Qualcomm and Chinese antitrust regulators didn’t immediately respond to requests for comment. A Datang representative declined to comment.
The approval comes as a US delegation wraps up its two-day meeting with Chinese officials in Beijing in an attempt to resolve US claims over unfair trade practices, many of which focus on the technology sector.
Qualcomm is still waiting for approval from China’s antitrust regulator for its planned USD 44 billion acquisition of NXP Semiconductors.
