The move is aligned with the Trump Administration’s policy on Beijing vis-a-vis semiconductors.
On Friday, as per a report from The Information citing sources who are employees at a joint venture between U.S. smartphone chipmaker Qualcomm Inc and China’s Huaxintong Semiconductor (HXT), the joint venture is set to close by the end of this month.
The joint venture was formed in 2016 for the design, development and sale of advanced server technology.
According to executives at the venture, discussions in internal meetings on Thursday point to the fact that the venture will close by April 30. As of August 2018, Qualcomm and China’s Guizhou province had invested a combined $570 million in HXT.
The development comes in the wake of a report earlier this month which stated the join venture’s chief executive had been replaced and that work on future chips had either slowed down significantly or stalled.
Qualcomm did not respond to a request for comment outside regular U.S. business hours.
HXT could not immediately be reached for comment.