Qualcomm and Tencent announce joint innovation center in China

November 15, 2016

SAN DIEGO

Qualcomm Incorporated (NASDAQ: QCOM) through its subsidiary, Qualcomm Wireless Communication Technologies (China) Limited, today announced a strategic relationship with the Interactive Entertainment Group (IEG) of Tencent, to identify and create leading immersive mobile user experiences in gaming and entertainment. The collaboration includes a joint innovation center designed to explore new user gaming and application experience in the future by utilizing the strengths of both parties.

“As virtual and augmented reality deployment accelerates, mobile has many distinct advantages, such as making it possible to enjoy incredibly immersive content wirelessly virtually anywhere you go, along with the scale of a large existing customer base, excellent development tools and high performance, the power efficient mobile Qualcomm® Snapdragon™ 800 series processor, will accelerate the next generation of VR and AR applications,” said Adrian Ong, vice president, business development, Qualcomm China. “The relationship between Tencent and Qualcomm Wireless Communication Technologies (China) Limited will help accelerate these new, mobile AR and VR gaming and entertainment experiences, as we utilize the best of both companies’ technologies and engineering expertise.”

As consumer appetites grow for the development of high quality and differentiated mobile augmented reality (AR) and virtual reality (VR) gaming experiences, the need for stronger relationships across the industry will become even more important.

"The joint innovation center will attempt to fully utilize Qualcomm Wireless Communication Technologies (China) Limited’s latest technologies and mobile devices based on Snapdragon, to develop and optimize more superior gaming products for Chinese players,” said Zhiming Nie, general manager, interactive entertainment R&D department, Tencent. “This will provide excellent gaming experiences and superior services to meet the high requirements of Chinese consumers.”

The new joint innovation center will attempt to utilize new technologies from Qualcomm Wireless Communication Technologies (China) Limited in future conditional projects, while the center receives fast and direct access to technology and services support. Tencent, is the top game content provider in China, and Qualcomm Wireless Communication Technologies (China) Limited is a world leader in mobile processors. This combination of brands, technology and engineering prowess can provide consumers with cutting-edge gaming and immersive entertainment experiences, driven by the worldwide adoption of AR and VR supported devices.

About Tencent

Founded in November, 1998, Tencent is a leading provider of Internet value added services in China. Since its establishment over the last decade, Tencent has maintained steady growth under its user-oriented operating strategies. On June 16, 2004, Tencent Holdings Limited (SEHK 700) went public on the main board of the Hong Kong Stock Exchange.

It is Tencent's mission to enhance the quality of human life through Internet services. Presently, Tencent provides social platforms and digital content services under the “Connection” Strategy. Tencent’s leading Internet platforms in China – QQ (QQ Instant Messenger), Weixin/WeChat, QQ.com, QQ Games, Qzone, and Tenpay – have brought together China's largest Internet community, to meet the various needs of Internet users including communication, information, entertainment, financial services and others. As of June 31, 2016, the monthly active user accounts of QQ was 899 million while its peak concurrent user accounts reached 247 million. Combined MAU of Weixin and WeChat was 806 million. The development of Tencent has profoundly influenced the ways hundreds of millions of Internet users communicate with one another as well as their lifestyles. It also brings possibilities of a wider range of applications to the China’s Internet industry.

Looking forward, Tencent remains committed to enhancing its development and innovation capabilities while strengthening its nationwide branding for its long term development. More than 50% of Tencent employees are R&D staff. Tencent has obtained patents relating to the technologies in various areas: instant messaging, e-commerce, online payment services, search engine, information security, gaming, and many more. In 2007, Tencent invested more than RMB100 million in setting up the Tencent Research Institute, China's first Internet research institute, with campuses in Beijing, Shanghai, and Shenzhen. The institute focuses on the self-development of core Internet technologies, in pursuing its development and innovation for the industry.

Tencent's long term vision is to become the most respected Internet enterprise. In order to fulfill corporate social responsibilities and to promote civil Internet communities, Tencent has been actively participating in public charity programs. In 2006, Tencent inaugurated the Tencent Charity Fund, the first charity foundation set up by a Chinese Internet enterprise, and the public charity website gongyi.qq.com. The website focuses on youth education, assisting impoverished communities, care for the disadvantaged, and disaster relief. Tencent has currently begun a number of public charity projects across China. It strives to help build a harmonious society and to become a good corporate citizen.