Xiaomi invests $7 billion to lead China's chip innovation

Monday 19 May 2025 - 12:05

By: Zahouani Ilham

Xiaomi invests $7 billion to lead China's chip innovation

Chinese tech giant Xiaomi is set to invest nearly $7 billion (50 billion yuan) over the next decade to strengthen its semiconductor capabilities. Known for its wide range of products, from smartphones to electric vehicles and smart home devices, Xiaomi is now placing semiconductors at the center of its long-term innovation strategy.

Founder Lei Jun emphasized that developing chips is essential for Xiaomi’s future in advanced technology. Celebrating the company's 15th anniversary, he described the initiative as a critical path forward, one that requires sustained commitment and resources.

Xiaomi began its chip journey in 2017 with the launch of the Surge S1, its first in-house processor for smartphones. However, production was halted due to technical and financial difficulties. Despite the setback, Lei Jun insisted it was part of the company’s learning curve, not a failure.

Since 2021, Xiaomi has funneled 13.5 billion yuan into research and development for its chip division, which now includes over 2,500 engineers. The company's long-term vision reflects broader national efforts, as both China and the United States compete for technological dominance, particularly in semiconductors.

Lei Jun reaffirmed Xiaomi’s enduring ambition to become a major chip innovator, urging public support and patience as the firm continues to advance.

The push aligns with China’s strategic goal to reduce reliance on foreign technologies. In 2023, Huawei—another Chinese tech leader—unveiled a high-performance smartphone powered by a chip that analysts believe required foreign components, highlighting the complexities of achieving full independence.

Experts suggest that efforts by firms like Xiaomi could pave the way for domestic champions capable of rivaling global players such as Qualcomm. Meanwhile, President Xi Jinping continues to call on Chinese companies to prioritize technological self-reliance.