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Mobile chip giant Qualcomm – fresh from its new deal with Korea’s Samsung – is targeting the datacentre market as it inks a joint venture to design and sell server chips in China.

The joint venture brings together Qualcomm and the government of China’s Guizhou province. A Qualcomm subsidiary will own 45 percent of the newly formed company and the Guizhou government holds 55 percent, for a total value of about US$280 million.

The venture, called the Guizhou Huaxintong Semi-Conductor Technology, will start by selling Qualcomm’s server designs, expected to launch some time this year.

Qualcomm and engineers at the joint venture plan to design a completely new chip for the Chinese server market that will rival silicon from Intel.
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