Taiwanese electronics maker HTC, most famously known for making smartphones, has announced the formation of a new company which will focus on future technologies and innovations. Reports in the Taiwanese media however, claim the company will focus exclusively on VR-based technology picking up from the success of HTC's Vive.

HTC announced that the new company was for the purpose of developing new technology and denied that it will focus only on VR. But Android Authority claims that plunging revenues on account of its smartphone business had shareholders panicking and the new company is in fact VR related.

According to government filings, the new company already has a paid-in capital of NT$1m ($30,864) and Cher Wang, HTC's co-founder and current CEO is the new venture's chairwoman. The data also shows that HTC's other founder Cho Ho-tu and Wang's husband Chen Wen-chi are on the board of directors.

The revenues of HTC have been in the doldrums for a while now. In February, its revenues declined 35% from the previous month while its earnings dropped 55% year-on-year, its lowest in almost a decade. Failing to gain any major traction from its smartphone sales, the company decided to focus on other products like VR and unveiled its first VR headset — the HTC Vive — in early 2015.

Vive has been very well received by both consumers and tech reviewers. Co-developed by smartphone manufacturer HTC and game developer/publisher Valve Corporation, Vive marks the onset of SteamVR experience.

Last week Wang Tsung-ching, head of HTV Vive China, said he expects the global VR market to overtake the smartphone market in four years in terms of sales volume. The company has also recently launched a business focussed global accelerator programme called Vive X and pledged $100m for start-ups who want to develop virtual reality products.