China Unicom enters computing joint venture with Shenzhen-listed data processing firm Wangsu
Feb 25, 2019 (China Knowledge) - Chinese telecommunications major China Unicom has entered a joint venture with Shanghai-based computer data processing provider Wangsu Science and Technology Co. as its hopes to be able to capture a share in the next generation computing market.
The joint venture will have a registered capital of RMB 500 million with both China Unicom and Wangsu taking a 42.5% stake each. The remaining 15% will be taken up by a Xiamen-based investment company.
The new joint venture named Yunji Intelligence Co. Ltd. will be focusing on content delivery networks (CDN) which are used to help companies and developers reduce respond times between devices over a network by delivery content based on the location of the user.
This form of data processing technology is termed as “edge computing” in the industry.
Through this joint venture, China Unicom hopes to capture a market share in edge computing market which is expected to grow from USD 9.6 billion in 2018 to USD 70.7 billion globally by 2026.
In addition, Wangsu which was founded in 2000 and listed in Shenzhen in 2009 is one of the earliest companies in the industry and will help to provide the joint venture with the required expertise in the market.
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