Chinese smartphone giant Xiaomi has announced its plans to invest at least $6.9 billion over the next decade to develop its own semiconductor chips, making a decisive push towards autonomy. Xiaomi CEO Lei Jun revealed the ambitious plan on the Chinese social media platform Weibo, acknowledging the challenging road ahead while emphasizing its strategic importance. This development coincides with US-China trade tensions and export restrictions.
“Xiaomi has always had a ‘chip dream’ because, in order to become a great hard-core technology company, chips are a peak that must be climbed and a tough battle that cannot be avoided”, Lei said. This decade-long investment with a keen interest in Systems on Chips (SoCs) for smartphones should give it a competitive edge, much like Apple. Xiaomi has largely depended on external suppliers like Qualcomm and MediaTek for its smartphone processors.
The company’s focus on in-house chip development is part of a broader trend among Chinese tech companies seeking to limit reliance on foreign technology. The first chip under Xiaomi’s new initiative is called the Xring 01 and is set to be unveiled on May 22. This follows similar announcements made by tech companies like Huawei, which is developing AI chips to compete with US firms such as Nvidia.
By making an investment of this magnitude in the semiconductor space, Xiaomi aims to solidify its position in the competitive smartphone market and future-proof the company in the face of global tech and trade shifts.
