Cloud Computing: Qualcomm Forms Joint Venture In China to Take on Intel

Mobile chip giant Qualcomm is getting into the data center market with a new joint venture to design and sell server chips in China. The joint venture was announced Sunday morning in China, and brings together Qualcomm and the government of China’s Guizhou province.

A Qualcomm subsidiary will own 45% of the newly formed company and the Guizhou government owns 55% for a total value of RMB 1.85 billion, or about $280 million.  As part of this deal with the province Qualcomm will also establish an investment company in Guizhou that will serve as the vehicle for future investments in China…

 

The venture, called the Guizhou Huaxintong Semi-Conductor Technology, will start by selling Qualcomm’s own server designs, expected to launch some time this year. Qualcomm showed off its server designs in October with a 24-core version that it sent to potential customers operating large data centers offering cloud computing services. However, it has not yet set a time frame for when it would offer a production-level server chip for sale. Anand Chandrasekhar, senior vice president and general manager, Qualcomm datacenter group, says a 6-month window was a reasonable time frame to expect but didn’t commit to a definite timeline…

Read more from the source @ fortune.com/2016/01/17/qualcomm-server-china/