Intel plans to invest up to RMB 9 billion (US$1.5 billion) in Tsinghua Unigroup, a Chinese state-owned company administered by Tsinghua University, with the goal of expanding the adoption of Intel-based mobile devices. Intel will work with Tsinghua Unigroup to jointly develop Intel Architecture and communications-based solutions for mobile phones.
Under the agreement, Intel will acquire a minority stake of approximately 20 percent of the holding company under Tsinghua Unigroup which will own Spreadtrum Communications and RDA Microelectronics.
Both Spreadtrum and RDA, controlled by Tsinghua Unigroup, are leading fabless semiconductor companies in China, which develop mobile chipset platforms for smart phones, feature phones and other consumer electronics products, supporting 2G, 3G and 4G wireless communications standards.
"China is now the largest consumption market for smartphones and has the largest number of Internet users in the world," said Brian Krzanich, Intel CEO. "These agreements with Tsinghua Unigroup underscore Intel's 29-year-long history of investing in and working in China. This partnership will also enhance our ability to support a wider range of mobile customers in China and the rest of the world by more quickly delivering a broader portfolio of Intel architecture and communications technology solutions."