Konka Group, the second-largest television manufacturer in China, has linked with United States-based semiconductor giant Intel to develop chips for next-generation mobile-phones.
The announcement underlined Konka's determination to shift its focus from the saturated and low-margin television market to the world's fast-growing cellular-phone market.
Company official He Jianjun said the Intel alliance would focus on developing third-generation mobile technology based on the code division multiple access (CDMA) system.
But, as the alliance was at a preliminary stage, no timetable for product launches had been set.
The mass-market launch of third-generation mobile-phone services in China is not expected for another two to three years.
Konka is among nine Chinese consumer-electronic goods firms approved by Beijing to make mobile phones, in a drive to recover market share from the foreign manufacturers that have dominated in the past decade.
Mr He said the company next month would open its third mobile-phone production line and almost double monthly production volume to 2.25 million units.