Xiaomi Might Use Its Own Chipset In Smartphones By 2025 Akin To Apple & Google

Apple is known for making iPhones that are powered by its own chipset. Now, Xiaomi might be eyeing to get into the list too. Xiaomi is reportedly developing its own mobile chipset for future smartphones, aiming to reduce its reliance on third-party suppliers like MediaTek and Qualcomm. By creating an in-house chipset, Xiaomi hopes to gain greater independence and carve out a unique position in the competitive smartphone market.

According to industry reports, the mass production of Xiaomi’s self-designed chip is expected to commence by 2025. This initiative reflects the company’s ambition to join the growing list of tech firms prioritizing semiconductor development—a sector receiving significant focus from Beijing amid escalating global tech rivalries with the United States.

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This move aligns with China’s broader push to reduce dependence on foreign technology, a priority repeatedly emphasised by Chinese policymakers. By developing its own silicon, Xiaomi could also support domestic suppliers, further contributing to the country’s self-reliance goals in the tech sector.

Xiaomi Trying To Become The WeChat Of Market?

The shift to self-designed chips represents Xiaomi’s foray into another pioneering domain, following its substantial investments in electric vehicles over the past year. However, breaking into the smartphone chipset market is no easy feat. Companies like Intel, Nvidia, and even Xiaomi’s rival Oppo have struggled to gain a foothold. Even Samsung Electronics, a major player in the industry, largely depends on Qualcomm for mobile connectivity and performance. Xiaomi might be trying to become the WeChat of the market now, foraying into every industry.

To date, only Apple and Google have successfully transitioned their entire product ecosystems to self-designed chips, showcasing the challenges Xiaomi may face on this path. By developing its in-house chipmaking capabilities, Xiaomi not only aims to enhance the competitiveness of its mobile devices but also to create smarter, more seamlessly connected electric vehicles. However, the company faces potential challenges as Taiwan Semiconductor Manufacturing Co. (TSMC), a key player in chip production, is under mounting pressure from U.S. authorities to limit collaborations with mainland Chinese clients. This could pose hurdles for Xiaomi as it contracts out the manufacturing of its chips.

Historically, Xiaomi has worked closely with its U.S. partner Qualcomm, an early investor in the company, to optimize its core processors while integrating additional innovations in areas like battery management and graphics performance. However, the shift toward self-designed chips marks a significant evolution in Xiaomi’s strategy. In a live-streamed company event last month, Chairman and CEO Lei Jun announced plans to significantly boost Xiaomi’s research and development spending. The company intends to raise its R&D investment from CNY 24 billion in 2024 to approximately CNY 30 billion (around $4.1 billion or Rs 34,570 crore) in the coming year, underlining its commitment to advancing its technological capabilities.