Oki Electric Industry Co. said Monday it has established a semiconductor marketing and design company in Shanghai to expand its business in China, with the aim of achieving a threefold increase in sales there by March 2007.

The new subsidiary, Oki Semiconductor Technology Shanghai Co., was set up Oct. 15 with capital of $2 million and started operations Monday. It is in charge of planning products, developing and designing hardware and software, and providing technical support to customers of the firm's semiconductor business in China.

Oki Electric has been expanding semiconductor sales in China, particularly in such areas as ring tones for mobile phones and memory for electronic dictionaries and toys, the company said.

"Because it is important to develop and design products that accurately and quickly meet customer needs, the new company can provide Chinese market-oriented products in a speedy manner, and can increase local technical support," said Akira Kamo, president of Silicon Solutions Company, a business division of Oki Electric.