SRS Labs and Skyworth Group will announce on Monday the establishment of a joint development centre in Shenzhen to research audio technologies for use in high-definition televisions.
The centre will employ 10 engineers initially, and deepens a five-year relationship between the United States and mainland companies.
Nasdaq-listed SRS Labs supplies audio technology such as semiconductors that allow televisions to produce a 'surround sound' effect with just two speakers.
This is the first time SRS Labs has teamed up with a consumer electronics manufacturer to develop a product.
Chairman and chief executive Thomas Yuen said a research partnership with Skyworth was necessary because China might choose to develop its own technology standard for high-definition television.
Mainland manufacturers were also looking to offer a richer audio experience to differentiate their televisions in the market.