JAC Capital, Leadcore, Qualcomm and Wise Road Capital enter agreement to form joint venture to design and sell smartphone chipsets in China
May 26, 2017
MAY 26, 2017 | Beijing
In Beijing today, Jianguang Asset Management Co., Ltd. (JAC Capital), Leadcore Technology Co., Ltd (Leadcore, a subsidiary of Datang Telecom Technology Co., Ltd.), Qualcomm (China) Holding Co., Ltd. (a subsidiary of Qualcomm Technologies, Inc) and Wise Road Capital Ltd. (Wise Road Capital) signed an agreement to form a joint venture – JLQ Technology. This joint venture will focus on the design, packaging, testing, customer support and sales related to chipsets for mass-tier smartphones designed and sold into China.
Representatives of JAC Capital, Brighten Li, chairman of the Investment Evaluation Committee, William Sun, general manager and Jason Jia, deputy general manager attended. On behalf of Datang Telecom Technology and Industry Group, Shanzhi Chen, vice president attended. On behalf of Datang Telecom Technology Co., Ltd, Yonghua Li, president and Kun Jiang, vice president attended. From Wise Road Capital, managing partner, attended the event. Representatives of Qualcomm, Cristiano Amon, executive vice president of Qualcomm Technologies, Inc. and president of QCT, Frank Meng, chairman of Qualcomm China, Savi Soin, vice president of strategy for Qualcomm Technologies, Inc., and other senior Qualcomm executives attended. Guoliang Qian, vice president of Datang Telecom and chief executive officer of Leadcore, hosted the ceremony.
This joint venture will combine Qualcomm's advanced technology, scale, product portfolio with Leadcore's accomplished R&D capability as well as deep relationships in China. JAC Capital's wide connections in Chinese financial circle, and Wise Road Capital's financial and industry eco-system resources home and abroad.
"This joint venture represents the organic combination of financial and industry resources of Qualcomm, JAC Capital, Datang Telecom, and Wise Road Capital, the synergy of which is advantageous to local technology innovation," said Brighten Li, chairman of investment evaluation committee, JAC Capital. "It also represents an important step for JAC Capital as an eco-system player in the global semiconductor industry. JAC Capital, with its background in the financial industries and many- years of experience in the semiconductor and telecommunication industries, will help this joint venture to achieve long-term success."
"With China's growing consumption of consumer chipsets and a well-developed smartphone eco-system, this joint venture will be well-positioned to tap into the growing consumer demand in China," Said William Sun, general manager, JAC Capital. "We believe the establishment of this Joint Venture in IC design will be beneficial for consumers and boosting China's IC design industry." Jason Jia, deputy general manager of JAC Capital, was quoted as saying, "Success of the joint venture is dependent on the level of collaboration among our partners. JAC Capital remains committed towards working with our partners and marching towards our common goals."
"For a long time, Datang Telecom Industry Group has been paying great attention to its development in the mobile industry. Now, the establishment of this joint venture could be regarded as a key milestone. As one of the most important IC design subsidiaries of Datang Group, Leadcore has been, for years, one of the leaders of SoC design in China, especially in wireless technologies," Said Shanzhi CHEN, vice president, Datang Telecom Industry Group, "We sincerely believe that this joint venture among Datang, Qualcomm, JAC Capital and Wise Road Capital, through combined contributions of leading technologies and capital, will further strengthen the overall competitiveness in mobile communication."
"As a state-owned high-tech backbone enterprise in the field of information communication, Datang Telecom has being put its focus on the core areas of the ICT industry. Datang Telecom is also actively seeking cooperation with the industry's leading companies to achieve win-win situation, while continue its internal development." Said Yonghua Li, CEO of Datang Telecom Technology Co., Ltd. "By working together with domestic and international capitals, Datang Telecom and the world's leading companies learn and benefit from each other through in-depth cooperation in the areas of technology, talents, market and etc, which will drive the IC development into a new situation."
Guoliang Qian, chief executive officer of Leadcore said,
"Since its inception, Leadcore has been committed to providing advanced mobile terminal chip and solutions. With burgeoning local IC design talents, we expect this joint venture to rapidly enter into its target segment and engage with a widespread range of customers."
"This joint venture further demonstrates Qualcomm's long term commitment to the China mobile industry. This project will help Qualcomm expand its presence to new segments and customers, as an addition to our vibrant and fast growing semiconductor business in China" said Cristiano Amon, executive vice president, Qualcomm Technologies, Inc., and president, QCT.
"Qualcomm has been a leading technology innovator in mobile for more than 30 years and we assume that this joint venture will develop chipsets to serve the 4G smartphone ecosystem in China," said Frank Meng, chairman, Qualcomm China.
"Wise Road Capital is committed to provide this joint venture with financial and industry resources to accelerate its growth," said Michael Zhang, managing partner, Wise Road Capital. "We hope this joint venture will build an important foundation for the long-term collaboration between our US and China partners. Wise Road Capital has established a focused fund to invest in the mobile technology eco-system to boost co-growth of portfolio companies, and strengthen collaboration with our partners."
JLQ Technology will be registered in Gui'an New Area in Guizhou Province. The formation of this joint venture is subject to the approval by relevant authorities, and the parties currently anticipate that it will be completed later this year.
About JAC Capital
Beijing Jianguang Asset Management Co., Ltd. ("JAC Capital") is a subsidiary of JIC Capital which is part of JIC Group (China Jianyin Investment Ltd). JAC Capital was established for the purpose of investing in the high tech industry including semiconductor, information technology, networking, data service, cloud computing and telecommunications. By taking advantage of the abundant resources of its shareholders in the international financial market, JAC Capital partners with industrial leaders in various sectors and makes investments in the focused high tech industry and the global semiconductors market to support its continuous development.
As a member of Datang Telecom Technology Co., Ltd. ("DTT"), Leadcore Technology Co., Ltd. (LEADCORE) is dedicated to providing leading 3G/4G chip and mobile terminal solutions. Leadcore's headquarter locates in Shanghai China, and its RD and service centers covers in Beijing, Shenzhen and Hong Kong.
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