Xiaomi, the Chinese technology powerhouse, has announced a major investment of CNY 50 billion aimed at advancing high-end smartphone chip technology, according to the company’s founder, Lei Jun.
The announcement, made through a WeChat post commemorating Xiaomi’s 15-year anniversary, underscores the strategic importance of chip development to the firm’s pursuit of cutting-edge technology.
Xiaomi’s ambitious semiconductor initiative involves a projected investment plan spanning “at least 10 years and at least 50 billion yuan,” Lei added.
Earlier, Xiaomi had ventured into smartphone chip production with the Surge S1, its inaugural in-house chip launched in 2017. However, technical and financial hurdles prompted the company to pause chip manufacturing, redirecting its focus towards other components and the burgeoning electric vehicle (EV) market.
Since 2021, Xiaomi’s chip development operations have been bolstered with CNY 13.5 billion in research and development funding, supporting a dedicated team of more than 2,500 professionals, according to Lei.
This strategic investment comes amid escalating technological competition between Beijing and Washington, as both sides vie for supremacy in accessing the latest semiconductor advancements. To mitigate reliance on foreign suppliers, leading Chinese companies are accelerating efforts to develop indigenous chip technologies.
