EX-4.16



 Exhibit 4.16 

Summary translation of the original text 

Construction Agreement 
 Outsourcing
Company: Techfaith Intelligent Handset Technology (Beijing) Limited 
 Contractor: Jiangsu Huakun Construction Project Co., Ltd. 

 

	1.	Project Profile: 

 Name: 8 items including A3 full machine manufacturing plant (mobile communication end
product advanced manufacturing center construction project) 
 Place: West side of Parcel E2-1, Xihongmen Town Industrial Base, Daxing District, Beijing

 Content: 8 Buildings including A3#, A4#, A5#, A6#, A11#, A12#, A13# and A14# plant. 

Source of capital: self-raised funds 
  

	2.	Scope of Contracting 

 Including foundation and base, electrics, main structure, air conditioner,
decorations, building intelligence, roof, outdoor installation, water supply and drainage, heating, outdoor environment, lifts and fire control, as set out in the blueprint. 
  

	3.	Construction Period 

 Date of commencement: May 16, 2012 

Date of completion: May 15, 2013 
 Total number of days: 365
days 
  

	4.	Standard of Project 

 Above the passing threshold 

 

	5.	Contract Price 

 Amount: RMB78,996,552, among which, expenses for safety protection and civilized
construction measure are RMB3,949,827 
 In the occurrence of, among other circumstances, price of steel, cement, premixed concrete, wires, cables, manpower
or machinery changes over + 3%, contract price may be adjusted for the amount out of the + 3% range. 







 The Outsourcing Company shall, within 7 working days upon the execution of this Agreement, make an advance
payment, amounting to 20% of the total contract price (excluding industrial injury insurance and expense for civilized construction measure, the whole amount of which shall be paid to the Contractor as advance payment) to the Contractor. The advance
payment will be subject to the deduction arrangement as set out in the special terms and conditions. 
  

	6.	Subcontracting 

 The Outsourcing Company agrees that the Contractor may subcontract the elevator
engineering project. 
  

	7.	Breach 

 In the event that the Outsourcing Company does not pay the project funds and no agreement is
reached by both parties as to deferred payment, which results in the project unable to proceed, the Contractor may cease construction and the Outsourcing Company shall pay a penalty amounting to 0.03% of the outstanding project funds per day with
the total penalty amount not exceeding 3% of the total contract price. 
 In the event that the Outsourcing Company does not pay the final contract price
without a reasonable excuse, within 28 days after its receipt of the project completion account report and material, it shall pay to the Contractor the interest of the outstanding payment starting from the 29th day and shall pay a penalty amounting to 0.03% of the outstanding project funds per day with the total penalty amount not exceeding 3% of the total contract price. 

In the event that the Contractor cannot complete the project as agreed hereof or as agreed by the engineers in case of deferral due to its own reasons, the
Contractor shall pay a penalty of 0.02% of the total contract amount per day with the total penalty amount not exceeding 2% of the total contract price. 

In the event that the quality of the project cannot meet the standard agreed hereof due to the reasons of the Contractor, the Contractor shall repair with no
charge until the quality of the project meets the standard agreed hereof without deferring the project timeline. 
  

	8.	Dispute 

 In the event of dispute during the performance of this Agreement, if both parties fail to reach
an agreement through consultation, a suit shall be submitted to the Court of Daxing District, Beijing. 
  

	9.	Effective Date 

 April 20, 2012