Tech giants Tencent and Huaqiang have announced an ambitious $10 billion yuan (US$1.6 billion) plan to promote the development of hardware startups in China. Their goal is to create at least 100 hardware firms with a value of 100 million yuan in three years.
Tencent will contribute its software technology and skills along with its huge user base to the collaboration, while Huaqiang will offer its supply chain management, manufacturing, testing and certification, and sales and marketing expertise in order to help the startups bring their products to market.
By combining their complementary strengths in this program, Tencent and Huaqiang are creating a highly scalable platform for accelerating hardware-centric innovation and entrepreneurship in China. It will be interesting to see if similar collaborative models are adopted in other countries.