HTC has established a new company, fueling speculation that the smartphone vendor may spin off its virtual reality (VR) business. HTC said that the the newly established company aims to develop "new and innovative technology".

HTC chairperson and CEO Cher Wang concurrently also serves as representative of the new company, according to company data as registered at Taiwan's Ministry of Economic Affairs (MOEA).

Previously, HTC denied a media report indicating that it plans to spin off its virtual reality (VR) business unit to form an independent company in a bid to boost its VR business.

By extending its reach into the VR business with the launch of the Vive headset, HTC has ambitions to take advantage of the emerging market to reduce the impact of escalating competition in the global smartphone market in both high-end and budget models.