Xiaomi, the known smartphone maker, has recently invested 50 million Yuan (roughly 7 million US Dollars) into BYD’s Semiconductor business. The smartphone vendor has acquired a 0.49 percent stake in the firm, which is a move to expand its own automotive component business.
For those unaware, BYD is a Chinese group that specializes in multiple fields includes automobiles, semiconductors, solar panels, and more. Furthermore, the Chinese company also recently announced that it has raised a total of 800 million Yuan (roughly 112 million US Dollars) from Xiaomi, SK Group, and even Lenovo.
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According to a few analysts, the investment from Xiaomi marks a step of the company’s plans on growing its components business or, in simpler terms, car components, within the automobile industry. Through this investment, Xiaomi will be able to gain access to data collected by cars made by BYD, helping it create a software-hardware integrated platform.
Notably, BYD Semiconductor’s products have the highest adoption rate by cars in China. Within the industry, the company has a sizeable market share of 18 percent in 2019. Furthermore, it is also planning on venturing further into the industrial vehicle sector. Hence, the investment from Xiaomi is a beneficial role for both sides, with capital being gained by one and data for the other.
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(Via)
