Smartphone chipset maker, Qualcomm, has inked a non-binding $12 billion deal with three of China’s largest smartphone supplier Vivo, Oppo, and Xiaomi. According to the agreement, Qualcomm will provide its components to all the three smartphone makers, for the next three years.
The agreement is part of the US and China’s over $250 billion package of deals unveiled during Trump’s first visit to China. Qualcomm CEO Steve Mollenkopf traveled with President Trump’s Department of Commerce Trade Delegation to China, to sign the memorandum.
“I’m honored to represent Qualcomm as part of this important trade delegation, which showcases the importance of win-win business relationships between the U.S. and China,” said Mollenkopf in a statement. “Qualcomm has longstanding relationships with Xiaomi, OPPO, and Vivo, and we are continuing our commitment to investing and helping advance China’s mobile and semiconductor industries.”
Vivo, Xiaomi and Oppo smartphone brands may be alien to the US audience, but they have a major footing in third world countries like India. Many analysts believe that China’s smartphone makers have ambitions to spread their network worldwide in coming years.
Since China is the hub of smartphone manufacturing, Qualcomm has a long relationship with its domestic market. The firm has been supplying chips here for ages.
This investment could be a major deal breaker for Qualcomm, who is tackling the challenge of a takeover by its rival chipmaker Broadcom Ltd. It is also involved in an ongoing legal battle against Apple Inc over patent fees charge.