Xiaomi Buys Stake in TCL to Boost Smart TV and Chip Development
Xiaomi acquires a 0.48 percent stake in major TV manufacturer TCL, strengthening a strategic partnership focused on chip research and smart device integration.
Xiaomi purchases a 0.48 percent stake in Chinese electronics manufacturer TCL, deepening an existing strategic alliance between the two companies. This financial investment causes TCL's shares to rise nearly four percent in morning trading, boosting the television maker's market capitalization to $36 billion.
The partnership centers on joint research and development for core electronic components, specifically focusing on chip technology. This collaboration makes it easier for TCL devices to integrate seamlessly into Xiaomi's expanding smart operating system ecosystem.
This move supports Xiaomi's broader strategy of partnering with established manufacturers rather than handling production itself, a tactic that helps the company keep prices low and maintain strong supply chain bargaining power. As a result of this robust hardware ecosystem, Xiaomi currently leads the global wearable device market, shipping 6.9 million units in the third quarter of 2018.