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US chip giant Qualcomm partners with Chinese tech firm to create smart-car lab

The ‘innovation lab’ in Chongqing aims to foster research and development in smart cars connected to the internet of things (IoT)

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A Qualcomm campus building in San Diego, California. Photo: Reuters

American mobile chip giant Qualcomm is teaming up with a Chinese tech firm to set up an innovation laboratory to develop smart cars that connect to the so-called internet of things (IoT) in the mainland.

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The partnership with Thunder Software Technology and the local authority will see the research and development lab established in Chongqing, southwest China’s biggest city, according to a statement from the Chongqing government.

Thunder Software jumped as much as 4 per cent on Wednesday morning on the Shenzhen Stock Exchange, before closing up 2.2 per cent at 42.48 yuan.

Overnight in the US, Qualcomm shares advanced nearly 2 per cent to close at US$53.87 on the Nasdaq exchange. In after-hours trading, they continued to rise, climbing 0.5 per cent to US$54.15.

The new centre, which the statement refers to as an “IoT-connected smart car collaborative innovation laboratory”, will be located in the so-called Xiantao big data ecological valley in the city’s Yubei District.

China has become a core market in the global wave of development for IoT and connected smart cars
Frank Meng, chairman, Qualcomm China

Its aim will be to create an ecosystem for IoT and boost research and development into IoT connected smart cars in China. It is hoped it will attract more car makers and research institutions to establish their own facilities in the cluster and thereby foster further innovation.

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