Microsoft (MSFT) China and Vimicro has signed a memorandum of understanding in Beijing and the parties have announced plans to further their cooperation in digital multimedia sector.

Local media reports that they will also extend their cooperation to mobile and home appliance multimedia fields. This is another strategic cooperation reached between the parties since the establishment of the Microsoft-Vimicro Multimedia Technology Center in 2003.

Under the MOU signed this time, the parties will increase their investment to promote the integration of their products and technology as well as to work on mobile phone service and home appliance multimedia. There is no word yet on the amount of funds each side will add to this venture.

Since its foundation four years ago, the Microsoft-Vimicro Multimedia Technology Center has developed multimedia instance communications application technologies targeted at individual users.