BEIJING -- Chinese internet group Tencent Holdings will work with U.S. chipmaker Qualcomm to develop video games tapping 5G technology, the companies said Tuesday, in a partnership that cuts across trade war lines.
The two companies will work together on mobile gaming devices and other projects. The devices will run on Qualcomm's widely used Snapdragon processors.
Tencent, one of the world's biggest video game companies, aims to boost the performance of its content by working with a top U.S. developer of mobile chips.
Qualcomm, for its part, likely sees games as a way to solidify its presence in the key market of China as global demand for smartphones wanes.
The memorandum of understanding signed on Tuesday also covers cooperation with Qualcomm in cloud-based gaming, virtual reality and augmented reality, as well as applying 5G networks to games.
"With 30 years of innovation under our belt, we're ushering in a new age of gaming," Frank Meng, chairman of Qualcomm China, said in a statement. "Mobile gaming, an important 5G use case, will soon take advantage of the next generation of connectivity. Faster speeds, more bandwidth, and cutting edge ultra-low latency will support real-time, multiplayer and immersive gaming experience."
The announcement comes a week after Tencent said it would work with the company behind the Pokemon franchise to develop games based on the fictional creatures.
Tencent's video game business suffered last year as China's approval process for new titles stalled. The group, whose WeChat app boasts more than 1 billion users, also spans digital payments, streaming music, cloud computing and other services.
Tencent Senior Vice President Steve Ma said the company hopes the Qualcomm partnership will use "our respective technologies and R&D expertise to further innovate the game industry, thereby bringing better game quality and interactive experience to users."