The Lenovo Group, which is owned by Lenovo, is investing more than $7 billion in ARM, the world’s largest maker of chips for smartphones and tablets, according an executive said Monday.
The investment comes as Lenovo prepares to unveil the first consumer-facing tablet at a global event in Beijing on Wednesday.
Lenovo has said the ARM-based tablet will be available later this year, with plans to ship at least 5 million of them by the end of the year.
Lenovo also plans to release the ARM processor in 2018.
The investment follows Lenovo’s $3.8 billion acquisition of ZTE in 2015.
The acquisition was criticized by some analysts for leaving the company with too much control over its products, which could give competitors an edge in the smartphone market.
The Lenovo Group’s ARM business, including servers, servers chips and mobile phones, grew at 5% to $6.3 billion in the three months ended in June, compared with a 4.6% growth in the S&P 500, according the Bloomberg Billionaire Index.
Lenovo’s stock has risen more than 40% this year.
The company plans to launch at least 10 million ARM tablets by the year’s end, according its official statement.
Lenovo expects ARM chips to be a major factor in the growth of the company’s enterprise products.