Xiaomi Set to Develop Its Own Mobile Chips to Reduce Reliance on Qualcomm and MediaTek

Xiaomi is reportedly planning to develop its own mobile chips, following in the footsteps of Google, which produces its own Tensor chips for Pixel smartphones. Traditionally, Xiaomi's smartphones have been powered by chips from Qualcomm and MediaTek, but the Chinese company aims to reduce its reliance on these two semiconductor giants. According to sources cited by Bloomberg, production of Xiaomi’s in-house chip is expected to begin in 2025, with the first smartphones featuring the company’s custom-made chip anticipated to launch in the following year.

This move is part of Xiaomi’s strategy to increase its independence in terms of technology and also to bolster its electric vehicle (EV) business, where a more integrated ecosystem would be easier to establish. However, the specifics of this chip development plan remain unclear, including the potential impact on Xiaomi’s relationship with Qualcomm. Xiaomi has long been one of the first brands to adopt Qualcomm's latest chipsets, such as the Xiaomi 15 series, which became the first smartphone to feature the Snapdragon 8 Elite chip announced last October. Xiaomi has yet to confirm or comment on the report regarding its chip development.

During the October 2024 launch event, Xiaomi’s CEO Lei Jun revealed that the company will allocate 30 billion yuan (approximately USD 4.2 billion) for research and development in 2025, up from 24 billion yuan this year. The main focus for next year will be on core technologies such as artificial intelligence (AI), operating system enhancements, and chip development.

Regarding the potential specifications of the chip, industry insiders speculate that Xiaomi’s custom chipset could be based on a 5nm or even 3nm fabrication process, developed by China's Semiconductor Manufacturing International Corporation (SMIC). This chip is expected to compete with established players in terms of power efficiency, energy management, and AI capabilities, which are in high demand in the current tech landscape.

Xiaomi had previously developed its own chip in 2021, called the Surge S1, which was used in the Mi 5C smartphone. Although the development of the Surge chip was not continued, this experience provides a foundation for Xiaomi as it attempts to develop its own in-house chipset once again. The company is also reportedly forming a dedicated semiconductor engineering team to work on the new chip, further signaling Xiaomi's commitment to this ambitious project.

If these reports are accurate, Xiaomi's move to produce its own chips would represent a significant step in the company's ongoing growth and innovation. It will be interesting to see how this initiative unfolds in the coming months.