Despite all the problems QUALCOMM (NASDAQ: QCOM – $71.42) is facing in China, the company has announced that it has invested $40 million in four Chinese companies as well as the China Walden Venture Investments fund. QUALCOMM is investing in 7Invensun, an eye-tracking solution provider; Chukong Technologies, a mobile entertainment platform provider; inPlug, a smart home device/platform solution provider; and Unisound, a voice recognition and processing technology provider. The investments in the startups and the fund will come from QUALCOMM’s $150 million strategic China venture fund that was announced earlier this year. QUALCOMM said it invested in the companies for their innovative work in mobile and wireless technologies. The China Walden Venture Investments fund will invest in chip-related technologies. It will be interesting to see if the moves defuse Qualcomm’s legal troubles in China as the San Diego, Calif.-based company is so dominant in processors that it faces antitrust probes and licensing royalty issues in that country. QUALCOMM is also looking to expand into adjacent chip markets throughout its world-wide markets. It plans to use its modem and app processor design competency, coupled with its economies of scale, to create low-cost chips for auto, networking and Internet of Things applications giving Intel Corp. a run for its money. It will also be entering the server CPU market in hopes of capturing some of Intel’s over-90% market share beginning in 2016. Until the situations in China are resolved, I predict that the shares will remain range-bound for a while. Nonetheless, over the longer-term, QCOM has solid long-term appreciation potential and can be held in a well-diversified aggressive account.