Xiaomi Corp. is advancing plans to develop its own mobile processor for future smartphones, aiming to reduce dependency on foreign suppliers such as Qualcomm Inc. and MediaTek Inc.
This initiative reflects the company’s effort to increase self-sufficiency and differentiate itself in an Android market largely dominated by Qualcomm-backed brands.
The in-house designed processor is slated for mass production in 2025, according to individuals familiar with the project who requested anonymity due to the confidential nature of the information.
This timeline highlights Xiaomi’s intention to align with the growing trend of major technology firms investing in semiconductor development, an area of strategic importance for Beijing amid its technological rivalry with the United States.
Chinese authorities have consistently urged domestic companies to minimize reliance on overseas technology, and Xiaomi’s initiative is a step in that direction.
For Xiaomi, this marks a significant move into a cutting-edge industry in a year that has already seen substantial investment in electric vehicle (EV) development.
Venturing into the smartphone chip market is a challenging endeavor. Even prominent players like Intel Corp. and Nvidia Corp. have struggled to compete effectively in this space.
Xiaomi’s domestic competitor Oppo also faced hurdles, while only a few companies, including Apple Inc. and Alphabet Inc.’s Google, have successfully transitioned their full product ecosystems to proprietary silicon.
Even Samsung Electronics Co., a global leader, continues to rely heavily on Qualcomm chips for superior efficiency and connectivity.
Developing proprietary chipmaking capabilities not only enhances Xiaomi’s competitiveness in smartphones but also supports its broader ambitions in EVs, where smarter and more connected technologies are crucial.
Xiaomi’s decision to enter the automotive sector was partly spurred by sanctions imposed during the Trump administration, though those restrictions were later lifted.
Xiaomi’s early-stage semiconductor efforts could introduce complications for the contract manufacturer tasked with producing these chips.
Taiwan Semiconductor Manufacturing Co. (TSMC), the industry leader, faces growing pressure from U.S. authorities to limit collaborations with mainland Chinese companies, adding complexity to this endeavor.
Despite these challenges, Xiaomi has historically worked closely with Qualcomm, a key early investor in the company.
Xiaomi has primarily focused on optimizing Qualcomm processors with enhancements in power management and graphics capabilities to improve performance.
Looking ahead, Xiaomi plans to allocate approximately 30 billion yuan ($4.1 billion) for research and development in 2025, marking an increase from this year’s 24 billion yuan investment.
According to Chairman and CEO Lei Jun, who co-founded the company nearly 15 years ago, the funding will prioritize core technologies, including artificial intelligence, operating system enhancements, and semiconductor development. Lei shared these plans during a live-streamed company event last month.
