Raytron Technology (SHA:688002) plans to establish a joint venture with related party Yantai Qichuang Xinyuan Technology, according to a Shanghai bourse filing on Friday.

The joint venture, which will have a registered capital of 50 million yuan, will produce physical intelligent terminal sensing modules and specialized industrial physical intelligent terminals.

Both companies will invest 25 million yuan each into the venture.

The chipmaker plans to sell its physical intelligent terminal business assets to the potential joint venture for 10.6 million yuan after the venture's establishment.

The company's shares dropped 5% at the midday trade.