Xiaomi to Build Its Own Mobile Processor to Reduce Dependence on Qualcomm

Jakarta, CNBC Indonesia – Xiaomi is said to be building its own mobile processor for its future smartphones. This is one of the steps taken by the Chinese company to reduce dependence on foreign suppliers such as Qualcomm and MediaTek.

This processor could help Xiaomi become more independent and stand out in the Android market led by Qualcomm customers.

Mass production of the self-designed chips is expected to begin in 2025, according to people familiar with the matter.

These plans for next year show that Xiaomi is looking to join the many other technology companies investing in semiconductors, which have also become a major focus for China in the broader technology trade war with the United States.

Chinese officials have also repeatedly called on local companies to reduce their dependence on foreign technology as much as possible, and Xiaomi’s move will likely help achieve that goal.

For the Beijing-based company, making its own processor is a step forward that coincides with a year in which Xiaomi also invested heavily in electric vehicles.

Entering the smartphone chip industry is not an easy task. Intel and Nvidia failed to compete, as did Xiaomi’s rival, Oppo.

Only Apple and Alphabet’s Google have successfully switched their devices to in-house designed silicon, but even industry leader Samsung Electronics relies heavily on Qualcomm chips for their efficiency and better mobile connectivity.

For Xiaomi, developing in-house chip manufacturing expertise could help the company’s efforts to achieve that goal.

Xiaomi will invest about 30 billion yuan (Rp. 65 trillion) in processor research and development by 2025, up from 24 billion yuan this year, said Chairman and Chief Executive Officer Lei Jun.

This research will focus on core technologies such as artificial intelligence, operating system improvements and chips.

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(Xiaomi logo appears on screen with a mock-serious tone, à la Rowan Atkinson)

Ah, Xiaomi, the Chinese tech giant that’s been making waves in the smartphone market. And now, they’re taking the plunge into the world of chip-making. Because, you know, what could possibly go wrong with a company that’s already mastered the art of making affordable phones with decent cameras? (smirking, à la Ricky Gervais)

But seriously, folks, Xiaomi’s decision to build its own mobile processor is a bold move. I mean, it’s not like they’re trying to reinvent the wheel or anything. Oh wait, they are. (chuckles) But hey, who needs Qualcomm and MediaTek when you can have your own in-house chip, right? (sarcastic tone, à la Jimmy Carr)

According to sources, mass production of these self-designed chips is expected to begin in 2025. That’s right, folks, just in time for the next smartphone revolution. Or, you know, the next time you need to upgrade your phone because the battery life is still crap. (laughs)

Now, I know what you’re thinking. “Xiaomi, isn’t this just a recipe for disaster?” Well, not necessarily. I mean, Apple and Google have managed to pull it off, and they’re not exactly known for their… ah, let’s say, ” modest” ambitions. (smirks)

But, let’s be real, folks. The smartphone chip industry is a tough nut to crack. Intel and Nvidia tried and failed, and even Samsung relies heavily on Qualcomm chips. So, Xiaomi has its work cut out for them. (in a mock-serious tone, à la Lee Evans) It’s like trying to make a soufflé, folks. You gotta have the right ingredients, the right technique, and a healthy dose of luck.

Xiaomi’s Chairman and CEO, Lei Jun, says they’ll be investing around 30 billion yuan (or roughly 65 trillion rupiah) in processor research and development by 2025. That’s a lot of yuan, folks. I mean, you could buy a lot of dumplings with that kind of money. (laughs)

But in all seriousness, this move could help Xiaomi reduce its dependence on foreign suppliers and make a bigger splash in the Android market. And who knows, maybe they’ll even manage to create a chip that’s faster than a speeding bullet. (smirks) Okay, maybe that’s a bit of an exaggeration.

So, there you have it, folks. Xiaomi’s taking the plunge into chip-making, and we can’t wait to see how it all pans out. Will they succeed where others have failed? Only time will tell. But one thing’s for sure, it’s going to be a wild ride. (winks)

(closing shot of the Xiaomi logo with a cheeky grin)

And that’s a wrap, folks! Stay tuned for more tech news, and don’t forget to like and subscribe for more of our witty commentary. (smirks) We’re not biased, we’re just… passionately expressing our opinions. (laughs)

Breaking News: Xiaomi Embarks on Ambitious Plan to Develop In-House Mobile Processor

In a strategic move to reduce its dependence on foreign suppliers, Chinese tech giant Xiaomi is reportedly developing its own mobile processor for future smartphones. This bold step is aimed at diminishing the company’s reliance on industry leaders Qualcomm and MediaTek, which have long dominated the Android market.

By designing its own processor, Xiaomi seeks to gain greater independence and differentiate itself in a crowded market where Qualcomm’s customers hold significant sway. Mass production of the self-designed chips is expected to commence in 2025, according to sources familiar with the matter. This timeline coincides with Xiaomi’s broader plans to invest heavily in semiconductor technology, an area of increasing focus for China amidst the ongoing technology trade war with the United States.

Chinese officials have consistently emphasized the need for local companies to minimize their reliance on foreign technology, and Xiaomi’s move is likely to be seen as a significant step towards achieving this goal. The company’s decision to develop in-house chip manufacturing expertise also aligns with its recent foray into the electric vehicle market, where it has made substantial investments.

However, entering the smartphone chip industry is a daunting task, with notable failures including Intel, Nvidia, and Oppo. Only a select few, such as Apple and Alphabet’s Google, have successfully transitioned to in-house designed silicon, while industry leader Samsung Electronics continues to rely heavily on Qualcomm chips for their efficiency and superior mobile connectivity.

To overcome these challenges, Xiaomi will invest approximately 30 billion yuan (Rp. 65 trillion) in processor research and development by 2025, up from 24 billion yuan this year, as announced by Chairman and Chief Executive Officer Lei Jun. This significant investment will focus on core technologies such as artificial intelligence, operating system improvements, and chip development.

By developing its own mobile processor, Xiaomi aims to enhance its competitiveness in the Android market and reduce its dependence on foreign suppliers. If successful, this move could have far-reaching implications for the company’s future growth and success in the rapidly evolving tech landscape.