Eyeing the huge demand for memory cards used in handheld applications in China, ProMOS Technologies announced it would establish a memory card production plant together with Beijing-based telecommunications service and equipment provider China Putian in Chongqing, Sichuan province (China).

The parties will invest a total of US$2.45 million in the joint venture and ProMOS vice president of business development, Albert Lin, will serve as president, according to ProMOS chairman ML Chen. ProMOS will hold a 40-50% stake in the new company, Chen noted. However, the company’s name has not yet been finalized.

The new company will produce various types of memory cards, including SD, MMC, CF, mini SD and RS-MMC. Assembly, R&D and marketing units will be located at Chongqing while channel management will be handled from Shanghai, Chen stated. ProMOS expects the new plant to be completed soon.

Observers stated that ProMOS’s partnership with China Putian should help the memory maker extend its presence in China’s handset market.