Called Qualcomm Ventures, the unit will invest $500 million in start-ups developing technologies based on Qualcomm's Code Division Multiple Access (CDMA) wireless technology. It will invest mainly in companies developing communication devices, wireless applications and infrastructure, content and services. Qualcomm Ventures will be a separate venture unit from Qualcomm Inc., which invests in public companies and wireless carriers that work toward incorporating CDMA technology.

Each start-up will receive up to $10 million in venture funding, according to Qualcomm. Qualcomm Ventures already has earmarked funds for Handspring, Phone.com and Ignition.

The VC unit's $500 million tops the size of Ericsson and Nokia's funds. In August, Ericsson Venture Partners allocated $300 million in funding, while Nokia Ventures, formed in 1998, invested $100 million.