HTC announced on January 7, 2011 that the company will set up an R&D subsidiary in China, with an initial investment of US$500,000, according to the Economic Daily News of Taiwan. It is reported that through the establishment of the new R&D subsidiary, HTC aims to strengthen its ties with China Mobile, China Telecom, and China Unicom in order to develop 4G technology and customize Smartphones for the three major Chinese telecom operators. HTC will inject capital into its wholly-owned subsidiary High Tech Computer Asia Pacific for the new R&D subsidiary establishment. In addition to providing technical consultation and services, the new subsidiary is projected to be in charge of design, R&D, and producing network and mobile phone related software and hardware.