Kingsoft has announced plans to invest CNY50 million in hardware construction, of which most of the funds will be used to upgrade, deploy and manage its thousands of servers in online game and anti-virus software sectors.

According to the prospectus before the initial public offering of Kingsoft in 2007, the company said it will spend about HKD94.1 million of the IPO financed capital on the construction of its information and scientific infrastructures and the maintenance and upgrade of servers is an important part of the information construction of Kingsoft.

Kingsoft's interim report and Q2 report of 2008 show that online games and anti-virus software have become the company's mainstays, accounting for 66% and 34%, respectively, of its total revenue.

In addition, investment in servers has been the deployment focus for online game and software companies. For example, one of China's top online game operators Shanda has invested over CNY800 million in its servers over recent years.

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