Chip maker qualcomm announced in setting up the joint venture company in the local market development and sales of chip.

The joint venture company registered capital of the semiconductor technology co., LTD guizhou huaxin estimated at $280 million, qualcomm will hold a 45% stake, and the government will hold 55% in guizhou.

As part of the deal, qualcomm to licence server chip technology and provide for the joint venture company development process to support the feasibility of commercialization.

The joint venture company will be dedicated to the world's second-largest country sales server technology development and sales of advanced server chips and technology of China.

Joint venture is a high investment in China part of the strategy. Not long ago, according to business practices, China to qualcomm offered more than $1 billion in fines.

Qualcomm President Derek abler said: "we not only provide capital for investment, we will also to the joint venture company license server technology and on the development and execution of the professional technical help. It emphasized the us as China's strategic partners commitment."

Qualcomm says, guizhou new district is big data, an important base of the industrial development, the green data center cluster includes companies such as China telecom, China unicom and China mobile for more than 25 million servers.