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Qualcomm and Tencent make a strategic collaboration agreement to cooperate on projects like creating a 5G version of a Tencent-backed gaming phone. The Chinese company aims at making 5G version gaming smartphone with Qualcomm chips.

Qualcomm announced that the agreement would help the companies work on digital entertainment projects expanding outside its domestic market. According to the agreement, Tencent games could be “optimized” for Android phones that would run on Qualcomm elite gaming chips.

Qualcomm is renowned for its most extensive supply of mobile phone chips for Android smartphones with a market capitalization of about $453 billion making it the largest mobile software company in China whereas Tencent is the largest gaming company that has suffered lower profit last year after the Chinese government stopped approving games for several months.

The strategic agreement between the two companies is announced to work on projects like:

• mobile gaming devices based on the Qualcomm Snapdragon mobile platform
• game content and performance optimizations
• Qualcomm Snapdragon Elite Gaming enhancements
cloud gaming
• AR/VR
• 5G gaming use case developments
• Always Connected PC

The Qualcomm Tencent agreement is big news due to the current “icy relationship” between China and America. The gaming company first chose to partner with American company Qualcomm. This, by itself, is a big deal for Qualcomm as its chipsets will be optimized for Tencent’s gaming library.

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