TechFaith (CNTF), a handset application software and solution provider, announced the expansion of its efforts to develop Smart Phones with the opening of a new subsidiary.

TechFaith's newly established wholly-owned subsidiary in China, TechFaith Intelligent Handset Technology Limited, will focus on developing Smart Phones and related products. The new subsidiary is expected to launch its first series of products in the first quarter of 2006.

Shaohua Si has been appointed to be the president of the new subsidiary. Si joined TechFaith in April 2005. Before joining TechFaith, Si worked for over a decade at Lenovo Group in several managerial capacities.

The new subsidiary's first series of products, which is expected to launch in January 2006, will be a GSM/GPRS Smart Phone and a Pocket PC based on Windows Mobile 5.0.

The company is also developing a CDMA 1X Smart Phone and a WCDMA UMTS Smart Phone, which are expected to be ready in the second quarter of 2006.