Bloomberg quoted an unnamed source as saying that the self-developed chip will help Xiaomi be more proactive and differentiate itself in the Android market. Mass production of the chip is expected to begin in 2025.

Xiaomi joins a growing list of major tech companies investing in semiconductors, a focus for Beijing in its battle with Washington. Chinese officials have repeatedly asked domestic companies to reduce their reliance on foreign partners as much as possible, and Xiaomi’s move could help achieve that goal.

xiaomi bloomberg
Xiaomi will develop its own chips to reduce its dependence on Qualcomm and MediaTek. Photo: Bloomberg

For Xiaomi, it marks a foray into another high-tech sector. Previously, the company invested heavily in electric cars.

However, according to Bloomberg , breaking into the mobile chip market is not an easy task. Intel and Nvidia as well as Oppo have all failed. Only Apple and Google have succeeded in switching all their products to their own chips. Even "big guys" like Samsung have to rely on Qualcomm chips because of better performance and network connectivity.

Developing chip expertise will help Xiaomi in making smarter electric cars. Founder Lei Jun once revealed that the reason the company entered the new field was fear of US sanctions.

According to Mr. Lei, Xiaomi will invest about 30 billion yuan ($4.1 billion) in R&D activities in 2025, up from 24 billion yuan this year. The company focuses on core technologies such as AI, operating systems, and chips.

(According to Bloomberg)