This week, Chinese telecom equipment makers Huawei and ZTE both announced separate extensions to partnerships in the U.S.
Huawei (Shenzhen, P.R.C.) announced that it will grant contracts totaling $6 billion to Qualcomm, Broadcom and Avago (San Jose, Calif., USA), three California-based communications technology companies which Huawei has worked with in the past.
The contracts will span a three year period and consist of the three U.S.-based companies providing Huawei with chipsets, microchips and other components for mobile phones. A breakdown of the distribution, by company and time, where not released.
ZTE (Shenzhen, P.R.C.) also announced its intent to continue to source application-specific integrated circuits (ASICs) from two U.S. manufacturers. ZTE plans to maintain its relationship with Qualcomm (San Diego, Calif., USA), a supplier of more than ten years, to provide device processor components for ZTE’s LTE adoption.
Additionally, Broadcom (Irvine, Calif., USA) will provide networking processor solutions for ZTE Bearer network, Ethernet and XDSL products, which will be used as ZTE expands its infrastructure presence worldwide.
According to ZTE, the company has invested more than $13 billion in U.S. companies and technologies through the purchase of products and licensing of intellectual property.
Huawei also said that since establishing its U.S. operations in 2001, it has partnered with 280 U.S. technology providers, with total procurement contracts exceeding $30 billion. These contracts have covered software, components, chipsets, and services, and its 2011 procurement in this critical region saw an 8% increase year-over-year.