Today, at Shanghai, Qualcomm and TechFaith announced that they will found a new company to focus on the development of application software for wireless devices. It’s name will be TechSoft and will have offices at Beijing and Hangzhou, China, and will be funded by Qualcomm and TechFaith.
Subject to the satisfaction of customary closing conditions, as well as the achievement of performance milestones, TechSoft will receive a total investment of cash and in-kind contributions valued at up to US$35 million from QUALCOMM and TechFaith.
In June 2003, Qualcomm announced that they want to invest up to $100 million in early- to mid-stage Chinese companies engaged in the development and commercialization of CDMA-based products, applications and services. TechFaith is one example of QUALCOMM’s investments since June 2003. TechFaith became QUALCOMM’s first independent handset design house partner in China, following an investment announced in April 2004.
“QUALCOMM works closely with numerous industry leaders, and is firmly committed to investing in the Chinese wireless industry as an area of tremendous growth and opportunity to serve global wireless markets,” said Dr. Sanjay K. Jha, president of QUALCOMM CDMA Technologies. “Our common goals with TechFaith have led the two companies to establish TechSoft, demonstrating QUALCOMM’s commitment to driving the advancement of 3G CDMA around the world.”
At the beginning, TechSoft will focus on 3G CDMA mobile handset and will be an independent entity, not a subdivision of Qualcomm or TechFaith.