Chinese smartphone giant Xiaomi is reportedly moving beyond partnering with external chipset makers and is actively planning a next-generation in-house smartphone chip to power its future flagships. The move underscores Xiaomi’s ambition to control more of its hardware stack and reduce reliance on Qualcomm or MediaTek.

Xiaomi already made strides with its Xring O1 chip, which entered mass production earlier this year and powers devices like Xiaomi 15S Pro. The company has committed substantial investments—reportedly 50 billion yuan over the next decade—towards chip R&D.

Why Xiaomi Wants Its Own Chip

• Performance & differentiation: By designing its own SoC, Xiaomi can tailor performance, power efficiency, camera support, AI processing, and more, making its devices stand out in a crowded flagship market.

• Supply chain sovereignty: Reducing dependency on external suppliers helps Xiaomi mitigate geopolitical or supply disruptions.

• Margin control: Owning the chip layer allows Xiaomi to capture more of the value chain rather than paying royalty or licensing fees.

• Competitive pressure: Rivals such as Apple, Samsung, and Huawei already pursue in-house chips—Xiaomi sees this as necessary to stay competitive.

Challenges & Risks

Designing a cutting-edge chip is complex, capital-intensive, and requires years of iteration. Xiaomi must balance continuing to source from Qualcomm/MediaTek while developing its chip roadmap. It also faces intense technical competition and demands from high-end users for performance parity.

Market Impact & Outlook

If successfully executed, Xiaomi’s chip move could shift the industry’s balance, placing it more on par with Apple’s vertical integration. For consumers, this may mean better optimization and unique features. For Qualcomm and MediaTek, Xiaomi’s transition may signal larger shifts in how OEMs structure their ecosystems.