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Xiaomi has explored this space earlier but now it seems ready to invest in its in-house hardware for mobile devices.
Having its own mobile chipset gives it Apple-control on the devices
Xiaomi is working on a self-designed mobile chipset for its next smartphones in an attempt to lessen its dependency on MediaTek and Qualcomm. Bringing its own chipset will allow Xiaomi to become more independent and differentiate itself. According to reports, mass production of the in-house-designed chip is anticipated to start around 2025.
The 2025 timeline highlights the company’s desire to become one of the many tech giants investing in semiconductors, which is a crucial area of concentration for Beijing in a larger tech competition with the US. Xiaomi is probably going to assist domestic companies ease their reliance on foreign technology, as Chinese policymakers have frequently requested.
The Beijing-based company is making its first move into yet another innovative industry after a year in which Xiaomi made significant investments in electric vehicles.
Gaining traction in the smartphone chip market is not simple. Intel, Nvidia, and Oppo, Xiaomi’s rival, were unable to properly compete. Due to Qualcomm’s superior efficiency and mobile connection, even industry leader Samsung Electronics Co. primarily relies on its chips. Only Apple and Alphabet’s Google have successfully shifted their whole product line to self-designed silicon.
In addition to producing more competitive mobile devices, Xiaomi can make smarter and better-connected EVs by building up its in-house chipmaking capabilities.
Furthermore, market leader Taiwan Semiconductor Manufacturing Co. is under increasing pressure from US authorities to limit its dealings with mainland Chinese customers, which might make Xiaomi’s fledgling semiconductor operations difficult for the chip manufacturer it contracts this production to.
Working closely with its US partner, the Chinese smartphone manufacturer—which counts Qualcomm as an early investor—has normally been happy to optimise the core processor and supplement it with improvements in battery management and graphics.
During a live-streamed company event last month, Chairman and CEO Lei Jun announced that Xiaomi will increase its research and development investment from CNY 24 billion in 2024 to around CNY 30 billion ($4.1 billion or Rs. 34,570 crore) next year.
