Meanwhile, HTC will invest USD19.5 million in another mainland subsidiary, HTC Communications, for sales channel expansion. This move is reportedly a preparation for the sales of China Mobile's TD-SCDMA smartphones.

HTC Electronics mainly focuses on the development, design, manufacturing, and assembly of PDAs and mobile phones. It also makes related parts and accessories. As a major manufacturing base for HTC in mainland China, the company was put into operation in 2009. HTC Electronics currently has capital of USD55.9 million and the new investment will be used to expand the production capacity of its Kangqiao plant in Shanghai.

HTC Communications currently has capital of about USD8 million and the new USD19.5 million investment is to help Dopod, a cooperating partner of HTC, operate the mainland market.