US-based Qualcomm and China-based TechFaith announced on October 1 that they have signed a licensing agreement, whereby Qualcomm will allow TechFaith to develop, sell, and manufacture subscriber units and modems based on Qualcomm's 3G technologies.

Under the agreement, TechFaith will be granted access to related technologies patented by Qualcomm, covering the 3G telecommunications standards of CDMA2000 (Code Division Multiple Access 2000), WCDMA (Wideband CDMA)/UMTS (Universal Mobile Telecommunications System), and/or TD-SCDMA (Time Division-Synchronous CDMA), according to a press release by Qualcomm.

According to the terms of the agreement, TechFaith will pay licensing royalties to Qualcomm based on the sales of patented products, Chinese-language Sina News reported.