China's Xiaomi is planning a next-gen phone chip, but won't release one yearly like Apple
News Summary
Chinese tech giant Xiaomi is planning its next-generation high-end smartphone chip, but Vice President Xu Fei stated the company will not release a new chip annually like rival Apple. This move mirrors efforts by top smartphone makers like Apple, Samsung, and Huawei, as Xiaomi seeks to expand its global market share, particularly in the more expensive segment. Last year, Xiaomi launched its XRing 01 system-on-chip (SoC) based on a 3-nanometer manufacturing process, committing to invest at least 50 billion yuan ($7 billion) over the next 10 years in chip development. Xu Fei noted that Xiaomi is a newcomer in the chip space, requiring time for learning and planning, thus unable to guarantee yearly SoC releases. Xiaomi expects to ship 1 million units of the XRing 01, but needs to produce 10 million units per chip release to break even, suggesting a decade-long patience for the SoC business to become profitable. The company's motivation for in-house chip development is to achieve tighter integration between hardware and its Android-based HyperOS and HyperAI applications, enhancing user experience. This also builds expertise for silicon development across its broader ecosystem, including smartwatches, refrigerators, and electric vehicles. Despite its own chip development, Xu Fei clarified that Xiaomi will continue its partnerships with Qualcomm and MediaTek, pursuing a "dual-solution" strategy to reassure existing partners.
Background
In recent years, major players in the global smartphone industry have heavily invested in developing their own chips. Apple, since launching its A-series SoCs in 2010, has released new iterations annually, achieving deep hardware-software integration that provides a distinct competitive edge. Samsung and Huawei have similarly leveraged their Exynos and Kirin chip series to enhance product performance and ecosystem control. Xiaomi, as one of the world's leading smartphone manufacturers, previously relied primarily on chips supplied by U.S. firm Qualcomm and Taiwanese company MediaTek. The company launched its first self-developed XRing 01 SoC last year, marking a significant step in core technology. This planning for a next-generation chip reflects Xiaomi's continued efforts to deepen its vertical integration strategy, elevate its brand's premium image, and achieve technological autonomy.
In-Depth AI Insights
Why is Xiaomi not rushing to release new chips annually, and what does this imply about its long-term strategy? - Vice President Xu Fei's statement reveals a pragmatic and long-term approach to Xiaomi's chip strategy. Unlike Apple's annual A-series chip iterations, Xiaomi, as a newcomer, faces significant R&D investment and breakeven pressures (XRING 01 needs 10 million units to be profitable, estimated to take a decade). This "no rush" strategy indicates the company prioritizes technological accumulation and user experience optimization over a pure performance race or marketing hype. - This implies Xiaomi aims for deep integration with HyperOS/HyperAI through its self-developed chips to enhance user experience, rather than striving for ultimate performance leadership. This differentiated strategy might help establish a unique brand perception in the high-end market, but the return cycle will be very long, requiring immense patience from investors. Is Xiaomi's continued partnership with Qualcomm and MediaTek merely a temporary measure, or are there deeper strategic considerations? - Xiaomi's claim to continue cooperation with Qualcomm and MediaTek, adopting a "dual-solution" approach, is a necessary short-term measure to maintain supply chain stability, mitigate risks, and avoid an immediate rupture with existing core suppliers that could trigger market disruption. - However, in the long run, the fundamental goal of Xiaomi's in-house chip development is to reduce reliance on external suppliers and strengthen its control and influence over core technologies. This "reassuring" statement is likely a transitional phase. As Xiaomi's chip technology matures and becomes more cost-effective, the proportion of its self-developed chips in its product lines is expected to gradually increase, especially in high-end flagship models. Qualcomm and MediaTek may ultimately face reduced shares in Xiaomi's orders. What is the significance of Xiaomi's in-house chip plan for China's overall semiconductor self-sufficiency drive? - Xiaomi, as a leading Chinese tech company, investing heavily in self-developing high-end smartphone SoCs is another illustration of China's pursuit of indigenous control and reduced external reliance in critical technological areas. This aligns with the broader context of the Trump administration's ongoing pressure on China's high-tech industry, highlighting a national determination to localize the semiconductor industry. - Although Xiaomi's chip development cycle is long and costly, its success will not only enhance Xiaomi's own competitiveness but also accumulate valuable experience and talent for China's semiconductor design and manufacturing ecosystem. This will have a positive demonstrative effect on the long-term development of the entire industry, helping China secure a more favorable position in future global tech competition.