Starting next year, Xiaomi’s flagship and midrange devices will feature the company’s self-designed chipsets.
This strategic shift aims to enhance self-sufficiency and reduce reliance on foreign suppliers like MediaTek and Qualcomm.
The move comes as Xiaomi prepares to mass-produce its own mobile processors in 2025.
This initiative not only highlights the company’s ambition to carve a niche in the competitive Android smartphone market but also aligns with China’s broader goal of achieving technological independence.
Joining an Elite Club
Xiaomi’s venture into chip-making places it among a select group of tech giants who design their own smartphone processors.
Currently, only Apple and Google have successfully entered this space. Xiaomi hopes to replicate their success, despite Samsung still relying on Qualcomm for flagship-level efficiency and connectivity.
Meanwhile, other firms like Intel, Nvidia, and OPPO have faced challenges competing in this market.
Whether Xiaomi’s move will significantly challenge Qualcomm and MediaTek, whose chipsets power Xiaomi’s flagship, midrange, and entry-level models—including its Redmi and Poco sub-brands—remains uncertain.
Impact on Electric Vehicles
Beyond smartphones, Xiaomi’s in-house chipmaking capabilities could improve its electric vehicle (EV) technology.
The company recently raised its 2024 EV delivery target to 130,000 units, reflecting an over 8% increase in confidence in its automotive endeavors.
Investing in Innovation
To support its ambitions, Xiaomi plans to invest up to $4.1 billion (30 billion yuan) in research and development by 2025, a significant increase from its previous target of $3.3 billion.
The funds will focus on Artificial Intelligence, chip development, and operating systems.
