Qualcomm plans to form a joint venture with Semiconductor Manufacturing International in China to develop 14nm chips.
China’s Huawei and Belgium’s Imec will also participate in the venture. Competition in the semiconductor space is fierce and companies such as Samsung are trying to muscle their way in with improved manufacturing techniques of their own.
Moreover, Qualcomm ran afoul of Chinese antitrust regulators earlier this year and was forced to pay a fine and reduce royalty rates. Partnering with Chinese companies is a way to help Qualcomm repair its image.
Many of today’s smartphones and tablets use chips made by Qualcomm. The denser the chip, the more efficient it can be. Focusing on the 14nm processes is vital for Qualcomm.
