By joining hands with leading Chinese digital television solution provider Digital Video Networks, Intel (INTC) has entered China's set-top box market.

The parties announced that they will cooperate to develop a double module STB that can support interactive digital services.

Eric Kim, general manager of Intel's Digital Home Group, says that different from other Chinese manufacturers' STBs that can only be used for signal conversion, their new STB which is based on Intel's CE2110 processor features more functions such as high definition film play and PC applications, plus more interactive experiences.

Earlier in 2005, Intel launched the Viiv platform in China, but the product has not been as well received as expected. Yan Xu, general manager of Intel China, says that the launch of the new STB does not mean that Intel will weaken its efforts on Viiv, instead the company will launch more PC products based on the platform.