HONG KONG (Nikkei Markets) -- Hong Kong-listed smartphone maker Xiaomi plans to invest over 10 billion yuan ($1.48 billion) in areas related to artificial intelligence and Internet of Things (IoT) over the coming five years, Chairman and Chief Executive Lei Jun said on Friday, according to a statement.
Artificial intelligence and IoT, a technology that interconnects gadgets and appliances over the internet, will be a part of the company's "core development strategy" over the next five years, Lei said. The Beijing-headquartered phone maker also plans to introduce its first 5G smartphone in the second half of this year as it expects "large-scale commercialization of 5G" in the next two to three years.
"5G will be the spring of mobile phone business, as the 5G era will surely trigger a new wave of smartphone replacement" demand, Lei said.
China will give out temporary 5G licenses in some cities this year, Minister of Industry & Information Technology Miao Wei said in an interview with state-owned CCTV, which was broadcast on Thursday.
Xiaomi shares gained 3.7% to HK$10.34 in Hong Kong on Friday, after hitting a record intraday low of HK$9.44 the previous day.
-- Benny Kung