Briefing: Xiaomi purchases 0.5% stake in electronics giant TCL

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小米战略入股TCL 加强大家电业务供应链能力 – Tencent Tech

What happened: Chinese smartphone maker Xiaomi has purchased more than 65 million shares in electronics giant TCL, amounting to nearly 0.5% of the company. TCL said that the shareholding is aimed at extending the cooperation between the two firms. Last month, TCL signed an agreement with Xiaomi to carry out joint research and invest in high-end hardware components.

Why it is important: China’s smart home device industry is growing fast, with the market expanding to cover not only entertainment hardware, but also devices for home security, lighting, and energy management. The purchase could give rise to more efficient production of Xiaomi’s smart home devices, on which the company has placed increased focus. The investment and cooperation agreement with Xiaomi could also streamline TCL’s move away from consumer electronics, allowing it to focus more on semiconductor and displays. Last month, the company announced plans to restructure after selling its stake in nine of its consumer-facing businesses.