Siemens A.G. and China's Huawei Technologies Co. Ltd., said they plan to form a joint venture to promote TD-SCDMA wireless communication standard that the Chinese government is pushing in the country.
It is expected that Munich-based Siemens will through its information and mobile communication group control 51% of the joint venture while Huawei will own the remaining 49%.
The joint venture will be based in Beijing.
The companies said they plan to invest more than $100 million in the new TD-SCDMA joint venture, which is yet to be named.
Siemens, which has already invested $170 million in the development of TS-SCDMA standards, will initially contribute 160 employees in Beijing as well as research know-how, the companies said.
"The cooperation will quickly push TD-SCDMA technology into the commercial business and optimize development costs for both of us," said Xu Zhi Jun, president of Huawei wireless business, in a statement.