Qualcomm is part of a new venture focusing on the design, packaging, testing, customer support and sales of chips for mid-tier smartphones designed and sold into China.

Other partners are JAC Capital, Leadcore Technology (a Datang Telecom subsidiary) and Wise Road Capital. The company will be called JLQ Technology.

In a statement, Qualcomm said the effort: “will combine Qualcomm’s advanced technology, scale, and product portfolio with Leadcore’s accomplished R&D capability as well as deep relationships in China”.

The joint venture will also benefit from JAC Capital’s connections in China’s finance sector and Wise Road Capital’s financial and industry ecosystem resources.

“With China’s growing consumption of consumer chipsets and a well-developed smartphone ecosystem, this joint venture will be well positioned to tap into the growing consumer demand in China,” said William Sun, general manager of JAC Capital.

Frank Meng, chairman of Qualcomm China, said: “Qualcomm has been a leading technology innovator in mobile for more than 30 years and we assume that this joint venture will develop chipsets to serve the 4G smartphone ecosystem in China.”

JLQ will be registered in Guizhou Province. Its formation is subject to approval by the relevant authorities, and it is expected to be completed later in 2017.

Research company Canalys in April announced smartphone sales in China during Q1 2017 grew to an estimated 114 million units, a 9 per cent increase on the same period of 2016.