Qualcomm, Guizhou pledge $280 million investment in chips

Chipmaker Qualcomm Inc delivered a boost to the high-tech sector in Guizhou province on Sunday by pledging a major investment.

The United States company said it is building a 1.85 billion yuan ($280 million) joint venture in the less-developed southwestern province to produce server chips for the domestic market.

Named the Guizhou Huaxintong Semi-Conductor Technology Co, the joint venture will be 55 percent owned by the Guizhou provincial government's investment arm and 45 percent by a Qualcomm subsidiary.