Xiaomi announces plans to invest at least $6.93 billion over a decade in chip design starting 2025, advancing its semiconductor capabilities.
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| Xiaomi’s founder Lei Jun reveals a $6.9B investment in chip development, aiming to expand its in-house semiconductor capabilities through 2035. Image: Xiaomi |
BEIJING, China — May 20, 2025:
Xiaomi, the Chinese smartphone and electric vehicle maker, announced on Monday it plans to invest at least 50 billion yuan (approximately $6.93 billion) over the next decade in chip design, beginning in 2025.
The investment, revealed by Xiaomi founder and CEO Lei Jun on Chinese social media platform Weibo, marks a significant commitment to advancing the company’s semiconductor ambitions. According to a Xiaomi spokesperson speaking to Reuters, the multi-billion-yuan investment initiative will span a minimum of 10 years, signaling Xiaomi’s long-term strategy to become a leader in chip innovation.
The company has already invested 13.5 billion yuan in the development of its advanced mobile chip, the XringO1, Lei added. The proprietary chip reflects Xiaomi’s push to reduce reliance on third-party semiconductor suppliers and to power its own devices with custom-designed processors tailored to its ecosystem.
Lei also disclosed that Xiaomi’s chip design division now employs over 2,500 people, underscoring the scale of the company’s internal engineering capabilities.
The announcement comes amid a broader trend in China where major tech firms are doubling down on domestic chip development in response to global supply chain shifts and geopolitical pressures. For Xiaomi, which has rapidly diversified into electric vehicles alongside its smartphone business, self-developed chips could play a key role in optimizing performance, integration, and user experience across hardware platforms.
With this ambitious investment, Xiaomi joins the ranks of global tech giants pursuing vertical integration through custom silicon, aiming to enhance control, performance, and resilience in a fast-evolving technological landscape.