Xiaomi is moving forward with its next big plan: developing its own chips for mobile phones. According to Bloomberg, the Chinese company aims to challenge industry leaders like Qualcomm and MediaTek, reducing its reliance on third-party hardware developers.
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The company reportedly plans to start large-scale production of its new chip in 2025. However, specific details about the chip’s technical specifications and how it will compete with its rivals are still unknown.
The report suggests that Xiaomi’s strategy is advanced enough to begin manufacturing its own SoCs (System on Chips) in 2025. It remains to be seen whether the company will first use its chips in phones launched exclusively in China or if it aims to target the global market from the start.
Xiaomi’s move into the mobile chip industry demonstrates its growing ambitions to expand into as many technology markets as possible. However, it is unclear how this development will affect its relationship with Qualcomm, one of its key Western partners. For instance, the Xiaomi 15 and 15 Pro were among the first smartphones globally to feature the new Snapdragon 8 Elite chip.
Why Xiaomi Wants to Develop Its Own Chips for Mobile Phones
Xiaomi has neither confirmed nor denied Bloomberg’s report about developing its own mobile chips. As for the company’s reasons for pursuing this, a key motivation could be the potential escalation of the trade war between the United States and China when Donald Trump begins his second term.
The Chinese government is reportedly encouraging companies to reduce their dependence on foreign components. Xiaomi’s push for its own mobile chips could be in line with this directive. However, the company’s move may not be limited to just political and trade concerns.
Developing its own semiconductors would allow Xiaomi to expand into other crucial markets, such as electric cars. Having its own chip could help Xiaomi create a more integrated experience across its phones, vehicles, and other devices powered by HyperOS, similar to Apple’s strategy.
However, despite Lei Jun’s ambitious plans, this move comes with significant challenges. It’s still unclear which chipmaker will handle the foundry services needed to mass-produce Xiaomi’s mobile chips. The most logical choice could be TSMC, but currently, this is not feasible.
This is due to pressure from the United States, which is preventing the Taiwanese manufacturer from working with Chinese companies. While there has been growing momentum in the establishment of chip factories in China, they still lack the technology to produce components using the most advanced processes.