HONG KONG (Yonhap News) ― The main Chinese subsidiary of SK Group has launched a mobile joint venture in the country in a bid to tap into its mobile solution industry, the group’s flagship company said.

SK China, established in July 2010 through the joint investment of SK Group subsidiaries, has established a 19 billion won ($16.8 million) joint venture called “SKMtek” with MtekVision, Korea’s leading fables semiconductor company, SK Telecom Co. said.

SK China and MtekVision will hold a 60 percent and 40 percent stake in SKMtek, respectively, said SK Telecom, Korea’s top mobile carrier.

Based in the southern Chinese city of Shenzhen, the new joint venture will aim to enter the rapidly growing system-on-chip market sector in China, the company officials said.

System-on-chip refers to integrating all components of a computer or other electronic system into a single integrated chip.

The Korean company said it expected SKMtek to provide system-on-chips for mobile devices, including smart phones and tablet personal computers.

“SKMtek will offer cost-effective, high-performance products by combining Korea’s remarkable semiconductor design technology with China’s strong semiconductor manufacturing base,” said SKMtek managing director Hahm Hee-Hyeok.

The company plans to achieve its sales target of 400 billion won in 2016, within five years of the establishment of the company.

SKMtek aims to expand its business from 2013 to automobile and electronic appliances as well as cutting-edge convergence business areas, such as u-health and smart grid.

According to analyst reports, the system-on-chip market, which currently takes up 82 percent of the total semiconductor market, is projected to reach $231.3 billion in 2013.

In 2009, China produced 65 percent of all information technology devices in the world and while it consumed 35 percent of all semiconductors produced in the world, China’s total semiconductor production met only 17 percent of its demand.

(Yonhap News)