ZTE to Purchase Chipsets from Qualcomm and Broadcom

ZTE Corp. said it would buy technologies including CDMA chipsets and 3G terminal products from Qualcomm and Broadcom worth a total of US$ 5

(Beijing) – ZTE Corp., China's largest-listed telecoms equipment company, announced it agreed to purchase chipsets from U.S. telecommunications firms Qualcomm Inc. and Broadcom Corp. on February 21.

According to the agreement, ZTE will purchase US$ 4 billion worth of chipset technology between 2012 and 2015. ZTE has also agreed to purchase US$ 1 billion in worth of chipset technology from Broadcom between 2012 and 2014.

The deal mainly involves CDMA technologies and 3G terminal products. ZTE will also buy telecom network products including Ethernet network chips and XDSL chips.

According to a report issued by International Data Corp. on February 3, 2012, ZTE, one of the world's biggest mobile phone manufacturers, will move its focus on smart terminal products and network equipment in 2012. In the fourth quarter alone of last year, ZTE sold 17.1 million units of mobile phones and accounted for 4 percent of market share in China.

Ye Weimin, senior vice president of ZTE, said the company's deal with Qualcomm and Broadcom stood as a strategic milestone in the company's development of overseas deals.