Chinese telecom firm Huawei yesterday unveiled plans to invest 70 million euros (US$90 million) in a research and development center for smartphone and tablet software in Finland, home to rival Nokia.
"The Finnish R&D center will be a key driver in Huawei's research and development of new technologies for mobile devices," the company said in a statement.
It said the center, which is to start with 30 employees and grow to 100 within five years, will focus on software development for smartphones, tablets and rich-media devices using Android and Windows Phone operating systems.
"The open and innovative environment in Finland is an ideal place for Huawei to strengthen our global R&D capabilities for devices, creating opportunities for both Huawei and the Finnish telecommunications industry," said Kenneth Fredriksen, vice president for Huawei Central, Eastern and Nordic Europe.
Finland is the headquarters of Nokia, until recently the world's top mobile phone maker.
Nokia is cutting thousands of jobs as it restructures toward using Windows Phone 8 for its smartphones. It previously had programmers developing its own smartphone operating system.
"I think this is another example of how other companies like Huawei can take advantage of the fact that Nokia is firing 10,000 people," said Magnus Rehle from the strategy firm Greenwich Consulting.
"There are a lot of highly skilled people who can help Huawei to make cheap Android-based smartphones for the growing markets outside Europe and the United States," he added.
Huawei has ambitions to expand globally.
Huawei said in September that it would invest US$2 billion in Britain and roughly double its workforce in the country within five years.