Xiaomi Corporation, a global leader in consumer electronics, is preparing to enter the competitive semiconductor market with its first self-designed mobile processor. The chips are scheduled for mass production in 2025, and the company aims to reduce its reliance on major foreign suppliers like Qualcomm and MediaTek.
This move also aligns with China’s broader push to reduce reliance on overseas technology, an effort fueled by ongoing tensions with the United States, Bloomberg reports.
For Xiaomi, this represents a pivotal step in boosting its smartphone offerings and enhancing the interconnected ecosystem it envisions for its future electric vehicles.
But the road to self-designed processors is not easy. Even tech giants have struggled to compete, and Xiaomi’s peer, Oppo, recently abandoned its chipmaking efforts. Only Apple Inc. and Alphabet Inc.’s Google have successfully transitioned their product lineups to proprietary chips. On the other hand, another industry giant, Samsung, still relies on Qualcomm for high-performance processors.
Xiaomi is ramping up its research and development (R&D) spending to support this venture. Chairman and CEO Lei Jun recently announced a planned investment of 30 billion yuan ($4.1 billion) in 2025, a substantial increase from this year’s 24 billion yuan.
This fund will focus on advancements in artificial intelligence, operating systems, and chip design — key areas poised to shape Xiaomi’s competitive edge in the future.
Xiaomi’s semiconductor venture could also pose challenges for its manufacturing partners. Taiwan Semiconductor Manufacturing Co. (TSMC), a critical player in the global chip supply chain, is already facing mounting pressure from U.S. authorities to limit business with Chinese firms. Navigating this geopolitical landscape will be crucial for Xiaomi’s success.
Adding complexity to the equation is Xiaomi’s historical reliance on Qualcomm, a close collaborator and early investor in the company. How Xiaomi balances this long-standing partnership with its newfound independence in chip design will be pivotal.
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