(Yicai Global) April 25 -- A unit of Chinese consumer electronics firm Goertek will set up a joint venture with US semiconductor maker Macom Technology Solutions Holdings to sell their components to China's emerging fifth-generation wireless network sector, and expand from there. 

Goertek Hong Kong will pay USD134.6 million to hold 51 percent of Macom Wireless HK's equity and Macom will have the rest, the two parents said in a statement yesterday. Each of the two will contribute USD25 million in working capital to the JV. The transaction is expected to take place in the second half of this year.

The pair will make components for 5G base stations in China, and Macom will receive royalties from sales, as well as have dividend preferences. Macom will retain the right to sell GaN-on-silicon products outside China, as well as in the special administrative regions of Hong Kong and Macau.

"Leveraging Macom's superior GaN-on-Si technology, we will provide world leading radio frequency components to the 5G market in China, as well as enriching our RF capabilities," Chief Executive Long Jiang from the Shandong province-based firm said in the press release. 

"This joint venture is a capstone to Macom's strategy to become a scale player within the multi-billion dollar 5G basestation market in China, which in turn enables us to further invest in US-based innovation," President and Chief Executive John Croteau from the Massachusetts-based partner said.

The deal depends on a permit from China's State Administration for Market Regulation. 

Editor: Emmi Laine