As part of the agreement, Allwinner will push Qualcomm's Snapdragon 410 and 210 chips with integrated LTE into low-cost Android tablets distributed worldwide
Allwinner mainly distributes Wi-Fi-only chips for tablets under US$200, and its LTE lineup will be filled up by Qualcomm Snapdragon chips.
The deal offers an opportunity for Qualcomm to grow in the Chinese market, where the company was hit with problems in recent years.
The number of tablets shipping with LTE is growing, and the partnership will fill up a big void in Allwinner's tablet chip lineup, said Tim McDonough, vice president of marketing at Qualcomm, during a press conference at Computex in Taipei on Tuesday.
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The deal shows how U.S. Companies are increasingly partnering with Chinese companies who have better distribution channels and understanding of the local market.
Intel last year partnered with Rockchip to design and distribute custom x86 chips for low-end smartphones and tablets in the Chinese market.