China TechFaith Wireless has formed a joint venture (JV) with China-based handset component maker BYD to focus on the development of CDMA handsets and other devices, according to sources from the Taiwan handset industry.

TechFaith held a 31% stake in the JV, while BYD contributed the remaining 69% capital, said the sources, noting that the JV is headquartered in Beijing with a workforce of 500 staff.

The TechFaith-BYD JV will utilize TechFaith's R&D strengths and BYD's manufacturing capacity to transform itself into an ODM and EMS giant for handset development and production, the sources contended.

TechFaith announced recently that it has further expanded its market to include India, Nigeria and Kenya. The company will begin shipping mid to high-end CDMA 1X feature phones to a telecom operator in India in the first quarter of 2008, according to a company press release.

In addition, TechFaith also said that it began shipping its CDMA 1X and CDMA/GSM dual-mode dual-standby phones to telecom operators in Nigeria and Kenya in early December 2007, with initial shipments reaching approximately 41,500 units.