Intel invests $1.5 billion in Chinese chip firm

Intel-logoChip behemoth Intel said it will plunge $1.5 billion into a Chinese company called Tsinghua Unigroup.

The firm is wholly state owned but funded by Tsinghua University.

The chip giant said it and Tsinghua have signed a series of agrements with the aim of expanding products for Intel mobile device in China and worldwide.

The two companies will jointly develop architecture and communications devices for mobiles.  The Intel investment will give it a 20 percent minority stake of the holding company.

It’s complicated but Tsinghua Holdings control two companies Spreadtrum and RDA, which are fabless semi conductors making chipsets for smartphones and the like.

One of the joint agreements is that Spreatrum will create and sell Inel based system n a chip products (SoCs), with products available in the second half of next year.

Brian Krzanich, Intel’s CEO, said China is biggest market for smartphones and has the biggest number of net users too.