Xiaomi prepares its own mobile chip and puts pressure on MediaTek and Qualcomm
Xiaomi is preparing a self-designed mobile processor for its upcoming smartphones, in a bid to reduce its dependence on foreign suppliers Qualcomm. and MediaTek.
The processor could help Xiaomi become more self-sufficient and differentiate itself in an Android market led by Qualcomm customers. Mass production of the in-house designed chip is expected to begin in 2025, according to people familiar with the matter who asked not to be named discussing a private business plan.
The 2025 timeframe underlines how Xiaomi is keen to join a growing number of tech majors investing in semiconductors, a key focus for Beijing in a 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 with that goal.
For the Beijing-based company, it marks a foray into yet another groundbreaking field, in a year that has also seen Xiaomi invest heavily in electric vehicles.
Breaking through in the field of smartphone chips is no easy task. Intel and Nvidia failed to compete effectively, as did Xiaomi’s rival Oppo. Only Apple’s Google and Alphabet have successfully transitioned their entire range of devices to proprietary silicon – with even market leader Samsung Electronics Co. relies heavily on Qualcomm’s chips for their better efficiency and mobile connectivity.
For Xiaomi, developing in-house expertise in chip manufacturing could help the company’s efforts to create smarter and better connected electric vehicles, in addition to more competitive mobile devices. Xiaomi’s move into car manufacturing was originally motivated by the company facing sanctions from the first Trump administration, which were later rescinded.
A Xiaomi spokesperson did not respond to requests for comment.
Xiaomi’s emerging semiconductor work could pose a challenge to the chipmaker to whom this production is outsourced, as market leader Taiwan Semiconductor Manufacturing Co. is facing escalating pressure from US authorities to limit its activities with customers in mainland China.
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 expand it with power management and graphics improvements.
Xiaomi will invest about CNY30 billion ($4.1 billion or Rs. 34,570 crore) in research and development in 2025, up from CNY24 billion this year, Chairman and CEO Lei Jun said at a live-streamed company event last month. The research will focus on core technologies such as artificial intelligence, operating system improvements and chips, said Lei, who co-founded Xiaomi almost 15 years ago.
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