HTC Corp. has partnered with Taiwanese manufacturer of display panels AU Optronics Corp. to jointly develop a 4.3-inch active matrix organic lighting emitting diode (AMOLED) touchscreen for its smartphone models.

Using AUO's AMOLEDs will help HTC maintain a steady supply st its home country and rely less in AMOLD display supplier Samsung Display.

Industry sources indicate that HTC reinforce its business ties with AU by investing to AUO.

The company expects revenue to rise in the second quarter, with the marketing of the "HTC One" series phone.

HTC company last month reported a 58 percent drop in second quarter profit year-on-year, as intensifying competition from Apple and Samsung hurt the company's sales.

HTC predicted third quarter revenue of NT$70-80 billion, down 41-48 percent from the same period last year.

HTC had hoped to win back some of its market with the launch of "HTC One" series, which offers users a better camera and music experience. But following the huge popularity of Samsung's Galaxy handsets, the model's key U.S. carrier, AT&T, recently slashed the prices of "HTC One" by half, which could hurt HTC revenue.