Mobile chipmaking giant Qualcomm has inked a big money MOU with three Chinese smartphone majors this week. The deal said to be worth $12 billion involves Xiaomi, Oppo, and Vivo for a contract of three years. Under the deal, Qualcomm will be supplying these three companies with SoCs and other components as part of the agreement.
According to Reuters, Qualcomm Chief Executive said that this move further strengthens ties with the three Chinese phone makers, also solidifying China’s budding mobile industry. While Oppo, Vivo and Xiaomi do occasionally equip their phone with MediaTek-powered chips, Snapdragon chipsets still dominate the industry.
As a matter of fact, China makes up half of Qualcomm’s chip sales and the MOU will be a real boost to the firm. The deal comes at a time when the mobile chip maker is in a heated legal battle with Apple and rumours of a takeover from Broadcom.
Also, the deal is part of a massive $250 billion package agreed by Chinese and US firms upon President Trump’s visit to China.