China's TechFaith Sets Up Handset Joint Venture with BYD

Handset OEM, China TechFaith Wireless is reported to have set up a joint venture with China-based handset component maker BYD to focus on the development of CDMA handsets and other devices, according to sources from the Taiwan handset industry.

Taiwan based DigiTimes reports that TechFaith has taken a 31% stake in the joint venture, while BYD contributed the remaining 69% capital. The new company is headquartered in Beijing with a workforce of 500 staff.

TechFaith has been expanding its distribution reach aggressively in the past couple of months having secured orders for CDMA 1X and mid-end CDMA/GSM dual mode handsets in Nigeria and Kenya along with a supply contract for mid to high-end CDMA 1X handsets to an unnamed Indian operator.

BYD recently raised US$758 million in a stock market floatation on the Hong Kong stock market. The floatation was at the lower end of market expectations due to a general weak demand - but mainly due to outstanding legal action from rival firm, Foxconn International Holdings (FIH) which is alleging that its commercial secrets have been used by BYD.