(ECNS) -- U.S. chipmaker Qualcomm is apparently planning to launch a joint venture with Chinese telecommunications equipment company Datang Telecom, with the possible participation of Chinese drone manufacturer DJI Technology, Shanghai Securities News reported.
Leadcore Technology, a subsidiary of Datang, failed in an attempt to acquire U.S. chipmaker Marvell Technology a year ago. State-owned Datang is now at a disadvantage compared with its competitors as the sector is increasingly integrating.
An insider told the newspaper Datang is likely to team up with Qualcomm in a joint venture. Negotiations are still in the early stages and exact details remain unclear, the report added.
Despite lackluster performance in other fields, Leadcore Technology is leading the unmanned aerial vehicle market while its chipset is used by two leading drone makers - DJI Technology and Zerotech.
The report said chipsets play an important role in drone quality, making possible proposed cooperation between Qualcomm, Datang Telecom and DJI Technology.
On Friday, DJI Technology denied possilbe participation on its official Sina Weibo account, saying the news is fake.
