Chinese electronics technology giant Xiaomi, Inc. announced plans to invest US$1 billion to expand its Internet TV business.

Xiaomi, now the third largest smartphone developer in the world, announced the investment Tuesday and said it plans to spend the money to improve its Internet television content.

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The Chinese tech giant announced on its official Weibo account it hired former chief editor Chen Tong of Sina Corp to help the company with its mission.

Sina Corp is an online Chinese media company that targets Chinese communities around the world.

"We want to repeat the success of Xiaomi's hardware integration model in the television industry," Chen said.

"Xiaomi TV's content must become even more rich and colorful, and become the weather vane leading the industry," Xiaomi added on its Weibo microblog.

The move puts Xiaomi in a position to compete against its tech neighbors, including Alibaba Group Holding Ltd., Baidu, Inc. and Tencent Holdings Ltd. These Chinese tech companies also recently invested in internet TV.

Reports claim 600 million users in China alone watch video content on their smartphones.

iResearch, a Chinese market consultancy, reported the internet TV industry will be worth US$3 billion this year. Xiaomi added it may continue to further invest in this industry in the future.

TagsTV, television, Video Content, Alibaba Group Holding, Baidu Inc., Sina Corp, iResearch