Japanese mobile phone carrier NTT DoCoMo has announced that it plans to form a joint venture with Samsung, Fujitsu and 3 other companies to develop Long Term Evolution (LTE) chips for smartphones.
Apart from NEC, Fujitsu's semiconductor division and Panasonic's mobile unit will also be taking part in the joint venture, the company said.
The companies plan to set-up the joint venture by the end of March next year. It is understood that NTT DoCoMo will hold a major stake in the smartphone semiconductor joint venture.
DoCoMo said in a statement that it is going to put up the initial $5.8 million required to set-up the joint venture company. DoCoMo and its partners are currently deciding on other details of the joint venture, which will be announced soon reports PC World.
The main purpose behind the joint venture is to reduce the reliance of Asian smartphone makers on US companies like Qualcomm for making smartphone chips. The LTE mobile network standard, which is also known as 4G, is predicted to become a worldwide standard in the years to come.
LTE is capable of providing up to 100 Mbps of download speeds to smartphone users. US wireless carriers like AT&T, Verizon and Sprint are already offering LTE service while some of the Japanese carries are also doing the same. In the UK, the auction for LTE spectrum is scheduled to take place next year.