US chipmaker Qualcomm signed a patent licensing agreement with Xiaomi, one of China’s biggest smartphone makers, on Wednesday. This will let Xiaomi upgrade its chipset so it can make next generation mobile devices in China, as well as move into overseas markets. According to Qualcomm’s press release, the agreement states that Xiaomi will pay royalties to develop, manufacture and sell 3G and 4G devices.
Qualcomm already has agreements with four of the top five phone makers in China. Its deal with Xiaomi draws in revenue for Qualcomm from its technology licensing business, which has been hurt by the antitrust investigation in China. After the announcement, Qualcomm’s shares jumped, the most they have since Nov. 2011, according to Bloomberg.