Chinese consumer electronics giant Xiaomi has announced plans to invest 50 billion yuan (US$6.9 billion) over the next decade to develop its own semiconductors, marking a significant return to a long-dormant ambition to build chips in-house. The renewed push comes amid intensifying geopolitical pressure on China’s access to advanced technology and growing calls for self-reliance in critical components like processors.
The commitment was made public by Xiaomi founder and CEO Lei Jun on Monday through a series of posts across WeChat and Weibo, timed to coincide with the company’s 15th anniversary. The investment will support Xiaomi’s efforts to design and manufacture high-end smartphone chips, starting with the Xring O1, a new system-on-chip (SoC) to be unveiled on Thursday.
The Xring O1: Xiaomi’s re-entry into flagship chips
Built on a cutting-edge 3-nanometre process, the Xring O1 is expected to power Xiaomi’s next-generation smartphones and potentially other devices, though specific product integrations remain unclear. The same fabrication process is used by Apple’s latest A18 Pro chips, suggesting Xiaomi is aiming for top-tier performance.
SoCs integrate multiple core components—including CPU, GPU, memory, and connectivity—into a single chip, offering manufacturers tighter control over hardware-software integration. Only a handful of smartphone makers, such as Apple, Samsung, and Huawei, have successfully developed their own SoCs for mass-market use.
Xiaomi’s previous SoC effort, the Surge S1, debuted in 2017 but was abandoned due to technical and financial constraints. Since then, the company has developed other semiconductor components—such as imaging and battery management chips—but not a full SoC. In Lei’s words: “That is not our ‘dark history’. That is the path we have travelled.”
A response to global chip tensions
The announcement comes against the backdrop of escalating US-China tech tensions, which have seen Washington impose restrictions on the export of high-end semiconductors to Chinese firms. The move has spurred a wave of domestic chip development efforts across China, including from Huawei, Baidu, and Alibaba.
Lei Jun framed Xiaomi’s initiative as part of this broader national push for technological sovereignty: “Chips are the underlying core track for Xiaomi to break through in cutting-edge technology, so we will definitely make an all-out effort.”
Xiaomi has already committed 13.5 billion yuan to chip-related R&D since 2021, supporting a team of more than 2,500 employees.
Qualcomm relationship to continue—for now
Despite the strategic pivot, Xiaomi is not cutting ties with its current chip supplier. Qualcomm CEO Cristiano Amon told CNBC that Snapdragon chips will “continue to be used in the Xiaomi flagships,” suggesting that the Xring O1 may supplement, rather than replace, Qualcomm’s processors—at least in the near term.
Analysts view Xiaomi’s dual-track approach as a hedge: maintaining existing partnerships for production stability while building longer-term autonomy.
EVs, tablets, and more: A major product launch ahead
The Xring O1 will debut alongside a suite of new Xiaomi products on Thursday, including the Xiaomi 15S Pro smartphone, a new tablet, and the highly anticipated YU7 electric SUV. The company had earlier disappointed fans by not showcasing the SUV at the Shanghai Auto Show, but expectations remain high, with some positioning the YU7 as a direct competitor to Tesla’s Model Y in China.
Xiaomi’s first EV, the SU7 sedan, launched late last year and quickly outsold Tesla’s Model 3 on a monthly basis—though momentum has slowed following a fatal accident in March involving an SU7.
Industry implications
The 10-year chip plan is the latest signal that Chinese tech firms are increasingly serious about replacing foreign tech dependencies with domestic alternatives. While the technical and financial challenges are formidable—designing competitive SoCs requires deep expertise, access to advanced fabrication, and vast capital—Xiaomi’s size and experience across consumer electronics, smartphones, and now EVs give it a broad platform to experiment.
Lei ended his message with an appeal to supporters: “Xiaomi has always had a ‘chip dream’. I earnestly request everyone to give us more time and patience to support our continued exploration on this road.”
