ZTE will buy $3 billion of semiconductor kit -

ZTE has signed purchase agreements with five American technology companies at a total value of $3 billion.

Under the agreements the company will now buy semiconductor components from Qualcomm, Texas Instruments, Freescale Semiconductor , Altera Corporation and Broadcom  over the next three years.

According to ZTE, developing these partnerships with US chip vendors will allow it to develop "highly competitive telecom" gubbins while reducing the time to market of its products. In the past, ZTE has paid over $4 billion to U.S. vendors for intellectual property and hardware products.

"As a publicly traded and transparent company with more than 18.72 percent equity owned by European and American investors, we believe it is very important for ZTE to cooperate with U.S. partners and continue to increase our investment in the U.S. market," said Mr. Ye Weimin, Senior Vice President of ZTE Corporation.

"We are keen to deepen our relationships with both U.S. suppliers and telecom carriers in order to meet the needs of our U.S. customers and provide highly secure and innovative products and solutions."

Chinese ZTE along with Huawei has faced concerns from US lawmakers over its ties to Beijing and the level at which it should operate in the US.