IBM announced Monday that Huawei Technologies Co. Ltd., one of China's largest communications network equipment suppliers, has agreed to use IBM's chips and other technologies in next-generation routers and optical transmission systems.
Under the terms of an agreement, IBM will supply products and technologies, including its PowerNP network processor, for use in Huawei's forthcoming IP (Internet Protocol) routers and SDH (Synchronous Digital Hierarchy) optical transmission systems, IBM said in a statement.
Other technologies to be supplied by IBM include the company's Packet Routing Switch, PowerPC processors and customized ASICs (application specific integrated circuits).
Financial terms of the deal were not disclosed.
The two companies have also launched a joint research and development venture to improve interoperability between their respective products and technologies, the statement said.
Founded in 1988 as a supplier of network infrastructure products to telecommunications operators in China and worldwide, Shenzhen, China-based Huawei posted 1999 revenue of US$1.5 billion. Its products are used in more than 30 countries, according to information from the company's Web site.