Terms of the agreement concluded also the establishment of a laboratory for joint use of both companies. Hangsheng will research and develop information management; security and remote control solutions for vehicles based on Intel's Atom CPU - already widely used in mobile devices; the TunnelCreek SoC (System-on-a-chip) product; and the Meego operating system (OS), an open source OS developed by Nokia and Intel for intelligent terminals including smartphones and laptops.

According to statistics from the China Association of Automobile Manufacturers, the number of automobiles to be sold in China in the year 2010 will reach 17 million. A survey from domestic consulting company, CCID Consulting, shows that the auto electronics market will grow rapidly as the country places new energy sources as a key strategy for the industry's development. The market volume of the industry is expected to hit 240 billlion ($36.14 billion) in 2011, the survey said.