Xiaomi Commits to Long Term Chip Development with Major Investment

Key Highlights:

Xiaomi to invest 50 billion Yuan on its chip manufacturing
The new chip manufacturing project comes after a delay of long time
13.5 billion Yuan has been raised from 2021 for research and development of chip by Xiaomi

China’s tech giant Xiaomi is investing 50 billion Yuan (USD 6 billion) in manufacturing its high-end smartphone chips. Xiaomi is known for its high-tech goods like smartphones, vacuum cleaners and electric vehicles. This new step from the company has been confirmed by the founder, Lei Jun, through social media handles.

The company’s history with manufacturing semiconductors goes back to the year 2017 when the company launched its first in-house chip, the Surge S1. However, this production was put to a halt due to technical and financial difficulties faced by the company at that time.

On the occasion of the company's 15th anniversary, the Founder of Xiaomi, Lei Jun stated, “Chips are the underlying core track for Xiaomi to break through in cutting-edge technology, so we will make an all-out effort. In pursuit of Xiaomi’s semiconductor ambitions, the firm has developed a plan involving at least 10 years of investment and at least 50 billion yuan. Xiaomi has always had a chip dream. I earnestly request everyone to give us more time and patience to support our continued exploration on this road.” Through the social media account Weibo.

The company from the year 2021 to till present has received a total fund of 13.5 billion Yuan for research and development. Such developments can be seen in the majority of Chinese firms, in current times, to reduce the dependence on foreign suppliers.