(Yicai Global) Dec. 8 -- Wireless sensor manufacturer Shenzhen Friendcom Technology Development Co. [SHE:300514] plans to spend CNY1 billion (USD151.1 million) to build an Internet of Things industrial base, enhancing the group's research and development capabilities and production capacity in a growing field.

The Guangdong-based firm said it approved the relevant investment proposal at a board meeting on Dec. 6. The company will relocate its factory and R&D center from Shenzhen to the Wuhan East Lake High-Tech Development Zone. It will set up a national-level smart grid communications engineering facility and a sensor chip design and industrial applications one.

Friendcom Technology will use CNY69.45 million it raised by issuing shares as well as company capital and bank loans to fund the project. Its construction will take place from next year to 2020.

The global IOT market is still in its infancy. The Chinese government intends to invest CNY3.68 trillion on IOT research and development by 2020, Friendcom Technology said, adding that it has been in a leading position in the field of wireless sensors and has independent intellectual property rights for its main products. It works with hundreds of distributors and partners.

Wuhan East Lake High-Tech Development Zone, also known as the Optics Valley of China, is the country's largest fiber optic cable, optoelectronic device and laser industry hub. Its optical fiber and cable production output ranks first in the world, and it houses China's only national optoelectronics laboratory.