TCL Corp., a leading Chinese consumer electronics manufacturer, and Genesis Microchip, a US-based image processing chip provider, have announced plans to set up a joint digital video laboratory in China.

The lab, which will be located in south China's Shenzhen city, will focus on R&D of quality-improving technologies for TCL's televisions. The two sides will co-develop DDHD (Digital Dynamic High Definition) chips for the Chinese market, said Shi Wanwen, head of TCL's multimedia business department.

TCL's four major products -- LCD TV, plasma TV, projection TV and CRT TV -- will use the co-branded chips, he said but declined to give any details.

According to Eric Erdman, CEO of Genesis Microchip, TCL will manage the daily operations of the lab; Genesis will over-see engineering, technological and marketing support for the project.

The US company is planning to achieve a sales revenue of 80 million dollars in China this year, mainly through TCL, its sole local partner in the digital TV sector.