Xiaomi plans to invest 50 billion yuan ($6.9 billion) over a decade to develop its mobile processor, aiming to strengthen its position in the semiconductor space.

Co-founder Lei Jun said developing chips is essential for Xiaomi to become a leading hard tech company. The first chip, Xring O1, will be unveiled on 22nd May.

The initiative began in 2021, and Xiaomi has already spent over 13.5 billion yuan. It plans to invest another 6 billion yuan in R&D this year, with over 2,500 people now in its chip team.

Xring O1 is built using second-generation 3nm technology, making it more advanced than China’s top foundry, SMIC, can offer due to US export restrictions.

Xiaomi has relied on Qualcomm and MediaTek for processors but is now shifting to an Apple-like strategy—designing its chips to integrate hardware and software better.

This chip push supports China’s broader tech ambitions. It comes as Xiaomi looks for new growth beyond smartphones, including in electric vehicles, though its EV efforts have faced setbacks after a fatal accident involving its SU7 sedan.

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