NEW YORK (TheStreet) -- Qualcomm Inc. (QCOM) has formed a deal with the largest semiconductor foundry in China to help it upgrade its technology, as Qualcomm works to improve its standing in China after it was investigated there over antitrust concerns, The Wall Street Journal reports.
Shares of Qualcomm are down by 1.48% to $65.99 in late morning trading on Wednesday.
The Chinese foundry Semiconductor Manufacturing International Corp. announced yesterday that it is forming a joint venture with Qualcomm, Huawei Technologies and the Belgian chip research center Imec in order to develop advanced 14-nonometer chips, The Journal said.
Last year, Qualcomm was investigated for antitrust practices. In February of this year the chip maker agreed to settle with a $975 million fine and to lower its royalty rates on handsets sold in the country, The Journal added.
Separately, TheStreet Ratings team rates QUALCOMM INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate QUALCOMM INC (QCOM) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income."