Qualcomm and Japanese electronics company TDK announced plans to “expand their collaboration across multiple technologies”, including the creation of a joint venture to deliver components for the mobile and IoT markets.

The unit, RF360 Holdings Singapore, will deliver RF front-end modules and RF filters into fully integrated systems for mobile devices and “fast-growing business segments” including IoT, drones and automotive applications.

The pair will also “expand their collaboration around key technology fields, including sensors and wireless charging”.

Steve Mollenkopf, CEO of Qualcomm, said its partner has “cutting-edge expertise in RF filters and modules”. The ability to deliver a complete system will “enable us to expand our growth opportunity by allowing us to accelerate our strategy to provide OEMs across our business segments with fully integrated systems that will enable them to deliver at scale and on an accelerated timeframe”.

Qualcomm Global Trading (QGT) will own 51 per cent of RF360, with the rest owned by EPCOS, a TDK subsidiary. QGT has the option to acquire (and EPCOS the option to sell) the remaining interest in the venture 30 months after closing.

“The aggregate transaction value is expected to be approximately $3 billion US dollars,” noted Qualcomm in a statement.

The agreement is subject to regulatory approvals and other closing conditions, and is expected to close by early 2017.