HTC is selling its £20 million smartphone factory

Following its stock price dive, HTC is now in great peril. And the Taiwan-based smartphone maker is now set to sell off a major smartphone factory to regain some capital.

The estimated 146-square meter factory in Shanghai, which the company built in 2009 for $32.2 million (£20.5million), will be sold to an undisclosed Chinese manufacturer. The deal is reportedly almost complete.

The funds HTC will receive from the sale may be helpful for the maker's rumoured upcoming smartphone, expected to be called the HTC O2.

However, despite its attempt to regain income from a new smartphone, the company is continuing to cut its costs as it confirmed cutting 15 per cent of its workforce and plans to reduce the number of smartphones it makes.

HTC posted its biggest ever quarterly loss of £163 million in the three months leading up to June, which was largely attributable to the lukewarm reception to the company's latest flagship smartphone, the HTC One M9.

Apart from the upcoming smartphone, HTC’s possible saving grace is in the form of its upcoming HTC Vive virtual reality headset set to be released by December of 2015. The company is developing the headset in partnership with gaming company Valve.