China's smartphone maker, Xiaomi bought 0.48 percent of The Creative Life (TCL) shares, one of China's top home appliance companies, TCL announced on Sunday.
Xiaomi did not reveal the exact amount it paid for the deal, but it probably cost the company about 170 million yuan (24.83 million U.S. dollars) under TCL's current share price.
The announcement also mentioned that Xiaomi had forged a strategic partnership with TCL earlier last December. The two sides would collaborate in areas of hardware and high-end equipment research and manufacturing to upgrade consumers' interactive experience with machines.
The move shows Xiaomi's ambition for the home appliance business, and it was put through at the time when TCL is pushing forward with its restructuring procedure to focus only on the semiconductor business.
TCL has vowed to position itself as a semiconductor display and material producing company in the future. If it was successful, that means the company needs large customers to buy its display screens, such as Xiaomi.
Data has shown that Xiaomi is ranked fifth in the display screen supply sector across the world. Meanwhile, Xiaomi's television sales hit about 3,160,000 units in the first half of 2018, and its smartphone output reached 100 million units during the first ten months last year.
Apart from television production, Xiaomi can also be found in the areas of manufacturing air conditioners, washing machines and other home appliances.
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