Prominent U.S. chipmaker Qualcomm Inc., has collaborated with China's People's Government of Guizhou Province in a $280 million joint venture, as the chipmaker attempts to expand its reach and develop chips for server systems, according to Market Watch.

Analysts see Qualcomm's collaboration with the provincial Chinese government as a sign of the U.S. firm's determination to diversify its range, expanding from mobile chips into the server chips market.

The venture, dubbed Guizhou Huaxintong Semi-Conductor Technology, would be owned by both Qualcomm and the provincial government of Guizhou, with 55 percent of the company belonging to the local government's investment arm and 45 percent belonging to the American firm, reports PC World.

Derek Aberle, president of Qualcomm, is optimistic about the partnership. "The actions announced today are important steps for Qualcomm as we deepen our level of cooperation with, and investment in, China. We have worked actively with our partners in China for more than 20 years; however, the strategic cooperation with Guizhou represents a significant increase in our collaboration in China," he said.

With the partnership of Qualcomm and the new entity's engineers, Guizhou Huaxintong Semi-Conductor Technology would be going head to head with Intel in the arena of server chips, which Intel currently dominates, according to Tech Times.

The partnership with the Guizhou government is not the first time that Qualcomm has partnered with a Chinese entity. Previously, the U.S. firm has collaborated with Semiconductor Manufacturing International Corporation, a firm headquartered in Shanghai, for the creation of its iconic Snapdragon mobile processors.

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