Borqs Technologies Signs Strategic MOU for 5G Industrial Park Project in South Taihu New Area of Zhejiang Province, China
Borqs Technologies, Inc. (NASDAQ: BRQS) has signed a Memorandum of Understanding (MOU) with the Board Committee of Huzhou South Taihu New Area for establishing a 5G Industrial Park Project. The initiative includes setting up a Joint Venture that will serve as the company's China headquarters for 5G operations, focusing on sales, R&D, and manufacturing. The project comprises a two-phase plan: creating a 5G R&D center and micro-electronics manufacturing lines, with government support for financial assistance, tax incentives, and rent-free facilities for the first two and a half years.
- Signing of MOU for a 5G Industrial Park indicates strategic expansion.
- Government support includes rent-free facilities and financial assistance for two and a half years.
- Creation of a Joint Venture for localized R&D and manufacturing enhances operational efficiency.
- Forward-looking statements indicate potential risks regarding the consummation of the Joint Venture.
- Operational impacts due to the ongoing coronavirus pandemic affecting supply chain and revenue.
SANTA CLARA, Calif., Nov. 23, 2020 (GLOBE NEWSWIRE) -- Borqs Technologies, Inc. (Nasdaq: BRQS, the “Company”), a global provider of embedded software and products for the Internet of Things (IoT), today reported that the Company has signed an MOU with the Board Committee of Huzhou South Taihu New Area for a 5G Industrial Park Project.
The company intends to setup a Joint Venture in South Taihu New Area in the near term which will serve as Borqs’ China headquarters for 5G activities, including sales, R&D center, and manufacturing.
This project will be implemented in two phases. First, a 5G R&D center and up to 10 micro-electronics manufacturing lines will be established. The Joint Venture will be provided rent-free facilities of 5,500 square meters for two and a half years. In the second phase, the local government authority will construct a Borqs 5G Industrial Park and the Joint Venture will be granted 13,000 square meters of land for commercial and residential use.
The Company’s operations within the area will also enjoy government supported manufacturing supply chain financial assistance, favorable equipment leasing programs, a series of local grants and local tax incentives.
The Company expects to sign the definitive agreement of cooperation in the very near future.
About Huzhou South Taihu New Area of Zhejiang province, China
The South Taihu New Area of Huzhou City was officially established on June 2, 2019, and is one of the four new areas established by the provincial government. It is located in the northern part of Zhejiang Province at the south shore of the beautiful Taihu Lake, with a total planning area of 225 square kilometers. Accessible by high speed railway and five express highways, the area is also connected with the inland water transportation channels in China. There are four international airports around the new area, including Hongqiao and Pudong in Shanghai, Xiaoshan in Hangzhou and Lukou in Nanjing.
About Borqs Technologies, Inc.
Borqs Technologies is a global leader in software and products for the IoT, providing customizable, differentiated and scalable Android-based smart connected devices and cloud service solutions. Borqs has achieved leadership and customer recognition as an innovative end-to-end IoT solutions provider leveraging its strategic chipset partner relationships as well as its broad software and IP portfolio.
Borqs’ unique strengths include its Android and Android Wear Licenses which enabled the Company to develop a software IP library covering chipset software, Android enhancements, domain specific usage and system performance optimization, suitable for large and low volume customized products. The Company is also currently in development of 5G products for phones and hotspots.
Forward-Looking Statements and Additional Information
This press release includes “forward-looking statements” that involve risks and uncertainties that could cause actual results to differ materially from what is expected. Words such as “expects”, “believes”, “anticipates”, “intends”, “estimates”, “predicts”, “seeks”, “may”, “might”, “plan”, “possible”, “should” and variations and similar words and expressions are intended to identify such forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Such forward-looking statements relate to future events or future results, based on currently available information and reflect our management’s current beliefs. Many factors could cause actual events or results to differ materially from the events and results discussed in the forward-looking statements, including the possibility that the Company will not consummate the joint-venture as described or may not receive actual orders in any amounts expected, and the negative impact of the coronavirus on the Company’s supply chain, revenues and overall results of operations, so the reader is advised to refer to the Risk Factors sections of the Company’s filings with the Securities and Exchange Commission for additional information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements. Except as expressly required by applicable securities law, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Investor Contact:
Sandra Dou
Director of Finance
Borqs Technologies, Inc.
sandra.dou@borqs.net
www.borqs.com
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