A three-year-long joint venture between the US chipmaker Qualcomm Inc. and Chinese province of Guizhou would be shut down by the end of April, a report from The Information revealed on Friday, the 19th of April 2019, citing employees at the joint venture.
The joint venture, Huaxintong Semiconductor, between the Chinese state of Guizhou and Qualcomm was formed back in 2016 to design, develop and sell advanced server technology. There had been an internal meeting among the executives of venture on last Thursday (April 18th), aimed at discussing the future of the joint venture, employees of the joint venture said on Friday (April 19th).
According to The Information report, followed by the internal meeting among the executives, the executive board of Huaxintong Semiconductor had decided to shutter down the joint venture by April 30th. Besides, the report had also added that the Chinese province of Guizhou and Qualcomm had invested $570 million combinedly as of August 2018.
The recent development of Qualcomm came forth, after earlier this week a US court had ordered a patent victory in favor of Qualcomm against Apple Inc, which had been eroding advancement of both the chipmaker and the iPhone maker.
Qualcomm declined to comment on whether its recent decision to shut down a joint venture with a Chinese province was politically motivated amid a tit-for-tat tariff conflict between United States and China.