Handset technology vendor Qualcomm announced that it has launched a new mobile device software company in China in partnership with local provider TechFaith Wireless Communication Technology.
Labelled as TechFaith Software China Limited, or TechSoft, the new venture will focus specifically on development of wireless applications software and will be headquartered in Beijing and Hangzhou, China.
The partners said that TechSoft will receive roughly $35 million in total investments from its parent companies, including cash and other assets, but they did not indicate how those contributions would be divided between the two firms.
The companies said that TechSoft will operate as an independent entity and begin its work focus on applications for use in 3G wireless handsets.
Qualcomm characterized the deal as part of its continued focus on promoting the use of its CDMA (Code Division Multiple Access) wireless technologies in the region.
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In mid-2003 the wireless semiconductor and handset software provider pledged that it would invest $100 million in the region to encourage companies investing in CDMA over other wireless technologies such as GSM networks.
TechFaith identifies itself as one of the largest handset application vendors in China, and has product lines dedicated to both CDMA and GSM (Global System for Mobile) communication networking technologies.
While CDMA, invented by Qualcomm, has long enjoyed widespread use in North America, GSM remains the dominant wireless network standard in Europe and has a growing footprint in the United States.
Chinese engineers have also created the regions own flavor of 3G communications network standard, known as TD-SCDMA (Time Division Synchronous Code Division Multiple Access) to reduce local providers dependence on technology licensed from overseas companies. However, Qualcomm maintains that use of TD-SCDMA would still require forms to pay its licensing fees.
Qualcomm executives said the firm would continue to aggressively pursue business opportunities and evangelize CDMA in China.
"Qualcomm is firmly committed to investing in the Chinese wireless industry as an area of tremendous growth and opportunity to serve global wireless markets," Dr. Sanjay K. Jha, president of CDMA Technologies at Qualcomm, said in a statement.
"Our common goals with TechFaith have led the two companies to establish TechSoft, demonstrating Qualcomms commitment to driving the advancement of 3G CDMA around the world."
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