China TechFaith Wireless inks license with Qualcomm
Shares of China TechFaith Wireless Communication Technology Ltd. (Nasdaq: CNTF) are skyrocketing after Qualcomm Inc. (Nasdaq: QCOM) said it has granted China TechFaith’s subsidiary, TechFaith Wireless Technology Group Ltd., a royalty-bearing, worldwide license under Qualcomm's patent portfolio to develop, manufacture and sell 3G subscriber units and modem cards that implement WCDMA and TD-SCDMA standards.
TechFaith will pay royalties at Qualcomm's standard worldwide rates and said they will be the same regardless of the CDMA standard implemented by the subscriber unit or modem card.
“We are experiencing increased momentum in the worldwide transition from 2G to 3G mobile services,” Marvin Blecker, president of Qualcomm Technology Licensing said in a press release. “The expansion of TechFaith's licenses from Qualcomm to including these additional 3G CDMA technologies will ensure that they remain highly competitive in the global market by offering advanced wireless handsets and modem cards to customers throughout the world.”
China TechFaith, based in China, is an original design manufacturer focused on research and development of cell phone solutions.
Shares of China TechFaith (CNTF) rose 30.05%, or $2.01, to $8.70 at 11:33 a.m. ET.
