- Xiaomi is famous for producing smartphones, vacuum cleaners and electric vehicles.
- Chips are the underlying core track for Xiaomi to break through in cutting-edge technology.
- The first chip by Xiaomi, was announced in 2017, but its production was stopped because of issues with both technology and money.
Chinese tech giant Xiaomi has announced a 50 billion Yuan ($6.9 billion) investment to develop high-end smartphone chips, as revealed by founder Lei Jun on Monday, marking the company’s 15th anniversary. Xiaomi is famous for producing smartphones, vacuum cleaners and electric vehicles, all while trying to excel in modern technology.
Lei Jun stated on social media, “Chips are the underlying core track for Xiaomi to break through in cutting-edge technology, so we will definitely make an all-out effort.” The company is planning to allocate investment in semiconductors for at least ten years and a minimum of 50 billion Yuan.” he added, outlining a long-term commitment to chip development.
The Surge S1, the first chip by Xiaomi, was announced in 2017, but its production was stopped because of issues with both technology and money. Reflecting on this, Lei noted, “That is not our 'dark history’, that is the path we have travelled.” Since 2021, Xiaomi has invested 13.5 billion Yuan in R&D, employing over 2,500 staff for its chip program. Lei explained, “Xiaomi has always wanted to succeed in chips,” and requested that, “I hope everyone will allow us more time to work on this path because of how new it is.”
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This step is part of China’s plan to become self-reliant in technology due to the rivalry with the U.S. over advanced components. Xi Jinping, the leader of Beijing, is urging that the country reduce its use of foreign suppliers and his influence is encouraging companies in the industry to do so. Huawei, a competitor of Xiaomi, unveiled a high-performance smartphone chip last year, in spite of U.S. restrictions. Pascal Viaud, CEO of Ubik, stated that Xiaomi’s actions could result in the rise of alternative companies that might compete on equal terms with Qualcomm, an American company.
This investment will improve Xiaomi’s chip-making abilities, allow it to become less reliant on imports and help it compete on the global chip market.