Sharetronic Data Technology (SHE:300857) signed a cooperation agreement with Guangzhou Development Zone Management Committee for the construction of an optical chips and modules plant, according to a Shenzhen bourse filing on Wednesday.

The Chinese wireless network and smart terminal services provider's shares fell nearly 4% during Thursday's morning trade.

Under the deal, the Guangzhou Development Zone Management Committee will support the company's investment and regulatory applications for the project.

The plant will develop ultra-low-power optical modules using proprietary chips, which can be used in artificial intelligence and super-computing centers.