Xiaomi is preparing to launch its own mobile chip for upcoming smartphones, aiming to reduce its reliance on foreign suppliers like Qualcomm and MediaTek. According to a report from Bloombergthis move aligns with China’s broader push for local companies to reduce dependence on U.S. technology. Sources familiar with the matter, speaking anonymously, indicated that mass production of the new in-house chip is expected to begin in 2025.
Developing a reliable mobile System on Chip (SoC) is a highly complex and expensive endeavor, requiring significant expertise in semiconductor design, manufacturing, and testing. Despite the technological advancements, only a handful of companies have succeeded in fully transitioning to custom-designed chips. Apple, for instance, has achieved this with its A-series chips, which power its iPhones, iPads, and other devices. Google’s Pixel devices also feature custom-designed chips, such as the Tensor SoC, which provides enhanced AI and machine learning capabilities. However, creating a competitive chip that can match the performance, power efficiency, and connectivity features of established players like Qualcomm and MediaTek remains a formidable challenge.
For Xiaomi, developing its own SoC could pave the way to greater technological independence, reducing its reliance on external suppliers. By controlling its chip design, Xiaomi could tailor its processors to better suit the needs of its smartphones, potentially gaining an edge in the fiercely competitive Android market. It would allow Xiaomi to optimize hardware-software integration, improve performance, and reduce costs, setting it apart from other Android manufacturers who primarily use Qualcomm-powered devices.
Xiaomi is known for being among the first to adopt the latest Snapdragon chips in its phones, such as the Xiaomi 15 series, which was the first to feature the Snapdragon 8 Elite. However, the company’s push for an in-house chip indicates a serious move toward greater technological independence.
To support this effort, Xiaomi plans to invest around CNY 30 billion ($4.1 billion) in research and development in 2025, up from CNY 24 billion this year. This investment will focus on core areas such as artificial intelligence, operating systems, and chip development, as announced by Xiaomi’s CEO Lei Jun.
If the rumors prove true, Xiaomi may use its new chip in select devices, while still relying on Qualcomm or MediaTek for flagship models in other instances. It’s also possible that Xiaomi could adopt a strategy similar to Samsung’s, using its own chip in flagship phones in some regions while opting for Qualcomm chips in markets like the U.S. However, these plans remain speculative for now, and we’ll have to wait for further details.
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