Xiaomi to Invest in 4G Chip Maker Leadcore Technology, Forming Joint Venture
Xiaomi is looking to expand its business and after hearing rumors about them acquiring a CPU maker, today they’ve formed a partnership with a 4G chip maker. Xiaomi and Leadcore Technology have created a joint venture, that focuses on 4G chip solutions.
The maker of the Mi handsets will account for 51% of the shares in the venture, while Leadcore will have 49%. This company is a subsidiary of Datang Telecom, that has announced its arm will transfer its 4G platform, the SDR 1860 to the joint venture. That will be done at a cost of $16.82 million. This allows Xiaomi to get the much needed affordable 4G chips, enabling them to launch more competitive 4G smartphones.
Right now Xiaomi uses chipsets made by Qualcomm and some from MediaTek. Since Qualcomm has been having trouble in China, it’s wise to look for alternatives these days. Xiaomi will ship around 60 million smartphones this year and aims at reaching 100 million the next year. What will they come up with next?