The latest flagship and midrange devices from Xiaomi from next year will ship with the company’s self-designed chipsets as the company plans to enhance self-sufficiency and reduce reliance on foreign suppliers like MediaTek and Qualcomm.
Xiaomi is set to begin mass production of its own mobile processors starting next year in a bid to stand out in the highly competitive Android smartphone market and also as part of China’s push towards technological independence. The company recently started making its own electric vehicles and now this move into chip-making signals its expansion into cutting-edge tech sectors.
Only two tech giants have been able to break into the smartphone chip market with their self-designed processors – Apple and Google with Xiaomi wanting to be part of that trend. It’s worth noting that Samsung still depends on Qualcomm for superior efficiency and connectivity for its flagship devices and Intel, Nvidia, and OPPO have struggled to compete with their self-designed smartphone processors.
It remains to be seen how this move will challenge Qualcomm and MediaTek who have been providing their chipsets to Xiaomi’s flagship, midrange, and entry-level smartphones – including the Redmi and Poco sub-brands.
Xiaomi’s development of in-house chipmaking skills is also slated to enhance its ability to create smarter, better-connected electric vehicles. The company recently raised its 2024 target for electric vehicle deliveries to 130,000, marking an over 8% increase in confidence for its new venture into automaking.
Xiaomi says that they are setting up to $4.1 billion(30 billion yuan) in 2025 from its previous $3.3 billion for research and development in 2025 with focus on Artificial Intelligence, chips, and operating systems.
The 2025 timeline highlights Xiaomi’s ambition to join other tech giants in semiconductor investment, aligning with Beijing’s push for local firms to minimize reliance on foreign technology.
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