Xiaomi produces its own mobile chip, putting pressure on MediaTek and Qualcomm

Xiaomi is preparing a self-designed mobile processor for its upcoming smartphones in an effort to reduce its dependence on foreign suppliers Qualcomm. And MediaTek.

The processor could help Xiaomi become more self-reliant and stand out in the Android market led by Qualcomm customers. Mass production of the in-house designed chip is expected to begin in 2025, according to the people familiar with the matter, who spoke on condition of anonymity discussing a private corporate plan.

The 2025 timeframe underlines how Xiaomi is eager to join the growing number of tech majors investing in semiconductors, a key focus for Beijing in the broader tech race with the US. Chinese officials have also repeatedly asked local companies to reduce their dependence on foreign technology as much as possible, and Xiaomi’s move is likely to help that goal.

For the Beijing-based company, it marks an entry into another cutting-edge area, in a year when Xiaomi has also invested heavily in electric vehicles.

Making headway in the smartphone chip sector is no easy task. Intel and Nvidia failed to compete effectively, as did Xiaomi’s rival Oppo. Only Apple and Alphabet’s Google have successfully transitioned their entire range of devices to self-designed silicon — even industry leader Samsung Electronics Co. is banking heavily on Qualcomm’s chips because of their superior efficiency and mobile connectivity. Is more dependent.

For Xiaomi, developing in-house chipmaking expertise could help the company in its efforts towards building smarter and better-connected EVs, in addition to more competitive mobile devices. Xiaomi’s move into automaking was originally motivated by the company previously facing sanctions by the Trump administration, which were later rescinded.

A Xiaomi spokesperson did not respond to requests for comment.

Xiaomi’s fledgling semiconductor operation could pose a challenge to the chip maker with which it contracts this production, as industry-leading Taiwan Semiconductor Manufacturing Co. faces concerns about reducing its business with mainland China customers in the U.S. Facing increasing pressure from officials.

The Chinese smartphone maker, which counts Qualcomm as an early investor, works very closely with its US partner and is generally content to optimize the main processor and enhance it with power management and graphics enhancements.

Xiaomi will invest CNY 30 billion ($4.1 billion or Rs 34,570 crore) in research and development in 2025, up from CNY 24 billion this year, Chairman and Chief Executive Officer Lei Jun said at a live-streamed company event last month. Said during. According to Lei, who co-founded Xiaomi about 15 years ago, the research will focus on core technologies such as artificial intelligence, operating system improvements and chips.

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