Qualcomm is setting up a server chipset design and sales unit with a provincial government in China, a move that could help boost the company’s bid to diversify from mobile chips into the server chips market.

The chip maker will own 45% of the joint venture, Guizhou Huaxintong Semi-Conductor Technology, and the Guizhou provincial government’s investment arm will own the remaining 55%. The initial registered capital of the joint venture will be about $280 million.

Qualcomm revealed plans in October to enter the server CPU market that Intel dominates, with a customer processor chip built using the ARM architecture. It said in November that it would co-develop the technology with local Chinese companies.

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