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Qualcomm’s Chinese Joint Venture Is Closing Its Doors

Well-known Chinese news site Sohu recently reported that HXT-Semitech, the joint venture between Qualcomm and China’s Guizhou Province, is set to close its doors by the end of April. According to information leaked from within in an internal conference, HXT had already announced the closure  along with the employee layoff compensation plan. HXT CEO Wang Kai had already quietly left the company and many HXT staff had also started looking for other opportunities. HXT did not make any official information available; nor did Qualcomm or Guizhou Province. HXT was founded in 2016 with a joint investment of US$570 million from Qualcomm (with a 45 percent stake) and Guizhou Province (with a 55 percent stake). The company later established three bases in Guizhou, Beijing, and Shanghai. HXT planned to focus on designing ARMv8 64-bit server chips. In May last year, HXT announced the successful design of its Number 1 chip for commercial release. After the news of HXT’s closure was made public, experts expressed the belief that there is no shortcut to take in the field of core chip development.

Source: Sohu, April 21, 2019