NTT Docomo Inc. and Samsung Electronics Co. are reportedly considering joining forces along with several other Japanese handset manufacturers to develop semiconductors for mobile phones on a new-generation mobile broadband standard, sources close to the matter said Tuesday, according to a Nikkei business daily report.
The two companies along with Fujitsu Ltd., NEC Corp. and Panasonic Mobile Communications Co. are planning to set up a jointly owned unit in Japan to design and develop a chip for regulating wireless signals to be mounted on handsets for the LTE standard, in an attempt to challenge the dominance of Qualcomm, the major supplier of a similar chip for the current 3G wireless mobile communications service.
DoCoMo is to take a majority stake in the joint venture, to be capitalized at about 30 billion yen ($389.6 million) and headquartered in Japan, said the paper.
Samsung expects the joint venture to help it in the development of next-generation telecommunication while DoCoMo hopes to lower chip procurement costs by taking part in development, the daily reported.