The Road to Self-developed Chips is Difficult Says Xiaomi as It Increased Capital

In today’s technology-driven world, the mobile brand is fiercely competitive. Most businesses aspire to stand out from the competition and provide distinctive features and capabilities to capture customers. The creation of self-developed chips is one component of this race that is becoming more and more important. These chips, created internally by mobile businesses, have the power to completely transform the market.

Xiaomi, as one of the leading brands in the industry, is not left behind in this aspect. In 2014, the firm partnered with Lianxin to establish Pinecon Electronics and released Xiaomi’s first self-developed mobile phone SoC chip Surging S1 in 2017, becoming the fourth mobile phone manufacturer with self-developed chip capabilities. Later, it abandoned the creation of integrated chip SoCs in favor of producing several tiny chips. This background gave birth to the independently created charging chip Surging P1 and imaging chip Surging C1.

However, despite this steady effort, the firm has recently revealed that the road to self-developed chips is very difficult and it would never give up on achieving its dream. Lu Weibing, Xiaomi Group’s president disclosed this today while announcing an increase in capital for its self-developed chip company.

According to the Qichacha APP, recently, Shanghai Xuanjie Technology Co., Ltd. underwent industrial and commercial changes, and the company’s registered capital increased from 1.5 billion yuan to 1.92 billion yuan. The company is said to be established in 2021. 

Lu Weibing stated at the previous Xiaomi financial report meeting that Xiaomi’s resolve to invest in self-developed processors will not waver. You cannot run a marathon at the speed of a “100-meter race”; you must prepare for a long-term struggle that will last for 10 or 20 years. He added that the chip’s goal is to improve the final products’ competitiveness and user experience.

The Qichacha APP document revealed that the senior vice president of Xiaomi Zeng Xuezhong serves as the company’s legal representative, executive director, and general manager, and Xiaomi co-founder Liu De serves as the boss.

The business is completely owned by X-Ring Limited and covers integrated circuit chip design and services, sales of discrete semiconductor devices, and retail of electronic components. Meanwhile, reports have revealed that the founding of the Xuanjie Company is a crucial move for Xiaomi toward self-developed semiconductors.