Microsoft Corp will set up an expanded China research and development (R&D) center in Shanghai, focusing on server, data management and Windows Live services.

The center, to be located in an industrial park in the southwest of the city is expected to open by the end of next year and will be Microsoft's largest R&D facility in Chinese mainland, employing 6,000 people.

Spending details on the project were not provided, but Microsoft invests around US$100 million annually in China.

(US$1 = 7.63 yuan)