Xiaomi plans in-house mobile chip production in 2025: report

Xiaomi plans on designing and producing its own mobile processors, aiming to cut its reliance on foreign chipmakers like Qualcomm and MediaTek, according to a recent report by Bloomberg News.

As per the report, the Chinese tech giant is set to begin mass production of its self-designed chip in 2025, a move that signals its intent to gain more control over its hardware and reduce dependence on outside suppliers in the highly competitive smartphone market.

This shift comes as part of a broader push by China to encourage domestic companies to reduce their reliance on foreign technology amid ongoing tensions with the US. For Xiaomi, the development of in-house chips is not just about smartphones; it is also about positioning itself to play a bigger role in other tech sectors, such as electric vehicles (EVs), where the company has already invested heavily, says Bloomberg.

However, breaking into the smartphone chip market is no easy task. Tech giants like Intel and Nvidia have tried and failed to compete effectively, while Xiaomi’s rival Oppo also struggled to develop its own chips. To date, only Apple and Google have successfully integrated self-designed chips across their full range of devices. Even Samsung, a leader in the industry, continues to rely heavily on Qualcomm for its mobile processors due to their superior efficiency and connectivity, adds the Bloomberg report.

For Xiaomi, the move to in-house chips could also help fuel its ambitions in the EV sector, where smarter and more integrated technologies are key. As per the report, Xiaomi’s push into the automotive market was partly triggered by US sanctions under the Trump administration, though those sanctions have since been lifted.

Xiaomi is backing its semiconductor ambitions with significant investment. The company plans to allocate 30 billion yuan (around $4.1 billion) to research and development in 2025, a substantial increase from its 2024 R&D budget. The focus will be on advancing core technologies, including artificial intelligence, operating systems, and chip development, further adds the report.