Chinese tech giant Xiaomi will invest at least 50 billion yuan (€6.1 billion) over ten years to develop its own chips. CEO Lei Jun announced the decision in a post on Weibo, China’s leading social media platform, on Monday.
This bold move comes amid growing efforts by Chinese companies to reduce dependence on foreign technology, especially from the United States. Washington’s trade restrictions have limited China’s access to key semiconductor components, raising pressure on domestic innovation.
The investment will begin in 2025, Xiaomi confirmed. On Thursday, the company plans to unveil the Xring O1, its new in-house system-on-chip (SoC). This chip is built using a 3-nanometre process, one of the most advanced methods available, matching the technology used in Apple’s latest iPhone 16 Pro.
SoCs combine various elements such as memory, processing power, and wireless connectivity into a single chip, powering devices like smartphones. Until now, Xiaomi has relied heavily on Qualcomm’s Snapdragon chips for its flagship models.
Xiaomi is expected to launch a new smartphone, tablet, and electric car at Thursday’s event, but it’s still unclear which will use the new chip.
Despite Xiaomi’s move, Qualcomm CEO Cristiano Amon said he expects to remain a key partner. “Snapdragon chips are still important for Xiaomi flagships,” he told CNBC.
Only a few companies globally — including Apple, Samsung, and Huawei — design their own chips. Xiaomi’s return to this field signals a strategic shift in its product direction.
