Chinese home appliances giant Konka Group Co Ltd announced on Monday the establishment of a fund with CITIC Holdings Co Ltd to beef up its layout in next-generation information technologies that are represented by the 5G, semiconductor and digital consumption sector.

According to a statement, Konka or its holding subsidiaries will invest 500 million yuan ($71.8 million), while CITIC Holdings also will invest 500 million, with the total amount of the fund to be no more than 1.006 billion yuan.

The fund will focus on the upstream and downstream fields of the 5G communication industry, semiconductor and new materials, high-end intelligent manufacturing, consumer electronics products and smart home equipment field.

The move is expected to accelerate the upgrading and transformation of Konka in related strategic key sectors, as well as consolidate and strengthen its advantageous position by introducing partners, capital and business resources.

In addition, CITIC Group, the parent company of CITIC Holdings, owns a systematic financial service system, with a comprehensive layout in industrial internet, digital consumption, intelligent manufacturing, special materials, new energy and communication services, which will play a greater synergistic effect with Konka in 5G smart homes and smart terminals.

Shenzhen-based Konka is ramping up efforts to expand into the semiconductor sector and increasing research and development investment.

Last year, the company announced plans to invest 1.5 billion yuan to establish a micro light-emitting diodes (LEDs) research institute with Chongqing Liang Shan Investment Co for the research and development, production and sales of micro LEDs.

Konka has concentrated its innovation efforts on cutting-edge technologies, such as 8K, AIoT, and 5G, and will continue to make efforts in emerging industries, new materials, and semiconductors to achieve innovation in core technologies and drive the company's growth.

Zhou Bin, president of Konka, said in an earlier interview that the company's R&D investment increased by more than 20 percent year-on-year in 2018, emphasizing they will accelerate efforts in the micro LED sector, make a breakthrough in technological innovation and strengthen cooperation with partners, along with consumption upgrade.

Konka has showcased its latest products - Smart Wall, which used cutting-edge Micro LED technology at this year's CES in January in Las Vegas, as well as other advanced display products, such as the 8K OLED TV, 8K Mini LED TV and a series of high-tech smart home products.