Xiaomi is allegedly developing its own smartphone chip to reduce its dependence on external technology providers such as Qualcomm and MediaTek. It is stated that this important move is a strategy compatible with the Chinese government’s calls for local companies to be less dependent on foreign technologies. According to Blomberg’s report, Xiaomi will start mass production of this chip next year. The first smartphones carrying this chip will also be released in 2025.
The Chinese government’s calls for technology independence have had a significant impact on Xiaomi and other local companies in recent years. Details such as how Xiaomi will respond to this call, the performance of the chip and in which segments it will be used are not yet clear. However, the company’s investments in its research and development (R&D) budget reveal the importance it attaches to this project.
Xiaomi plans to allocate approximately 30 billion yuan ($4.1 billion) to R&D studies for 2025. This figure represents a 25 percent higher increase than the 24 billion yuan ($3.3 billion) budget the company allocated for 2023. It is estimated that the development process of the new chip will take a significant share of this budget.
How will Xiaomi test against the giants?
It is a matter of great curiosity how the chip that Xiaomi will develop will compete with the solutions of companies that are strong in the industry such as Qualcomm and MediaTek. The chip called Surge S1, which the company had previously developed, was released in 2017, but was only used in a limited number of devices. There is no detailed information yet about the scope and goals of the new chip project. However, this initiative is expected to make significant contributions to Xiaomi’s goal of creating its own ecosystem and increasing its technological independence.
For now, details about the new chip developed by Xiaomi are only rumors. It is possible that official statements or new leaks regarding this project will come to the fore in the coming period. What difference the company will make in the technology world with this step will become clear with the devices planned to be introduced in 2025.