Xiaomi Ramps Up Chip and SUV Ambitions

Xiaomi marked its 15th anniversary with an ambitious double play: a high-performance electric SUV and a self-designed 3-nanometer smartphone chip, both unveiled at a livestreamed event in Beijing. 

The YU7 SUV, promising a driving range of 835 kilometers on a single charge and acceleration that beats the Tesla Model Y and Porsche’s electric offerings, hits the market in July. 

However, no pricing or preorder details were shared, a cautious move following a fatal crash involving its debut EV in March, which shook investor confidence and slowed orders.

More significantly, Xiaomi introduced the Xring O1 chip, a $1.87 billion investment designed in-house and manufactured by TSMC. The chip, which launches in the new 15S Pro smartphone retailing at $764, reportedly outperforms Apple’s A18 Pro in thermal efficiency under heavy use. 

The push into chip design signals Xiaomi’s broader strategy to emulate Apple’s hardware-software integration and reduce reliance on Qualcomm and MediaTek. Over the next decade, Xiaomi plans to invest at least $7 billion into chip development, with $833 million earmarked for this year alone.

What Does This Mean for Me?

These moves align with Beijing’s larger goals to secure supply chains and cut foreign tech dependency amid escalating U.S.-China tensions. The chip, hailed by Chinese state media as a breakthrough, further confirms the country’s resolve to cultivate domestic innovation. 

Meanwhile, Washington’s fresh warnings against using Huawei’s AI chips reflect ongoing hostilities, even as both sides pledged to ease tariffs at recent Geneva trade talks.