Shanghai-headquartered semiconductor foundry SMIC announced that it has signed a strategic collaboration agreement with Datang Telecom Technology and Industry Holdings on December 24, 2008, according to a January 9 report by Xinhua News. As per the agreement, SMIC will assist Datang in developing advanced communication logic process technology and IP (Intellectual Property) pool leveraging SMIC's existing R&D facilities and personnel. SMIC and Datang also agree to deepen their partnership in terms of fabrication. In addition, the two companies vow to join hands on developing the international markets and applying for China's R&D projects in the IC sector. In November 2008 SMIC sold a 16.6% stake to Datang, on condition that the present strategic collaboration should come into place.