Xiaomi said it will not abandon the development of its own processors

The example of Huawei Technologies is before everyone’s eyes. As soon as the Chinese company took a leading position in smartphones and base stations, US sanctions made it impossible to produce processors developed in-house. Xiaomi, against this background so far, demonstrates modest ambitions but claims that it will not turn off the path of developing its own processors.

This week Xiaomi unveiled a dedicated Surge C1 processor that will be used in smartphones for image processing. The Surge S1 mobile central processor was developed by Xiaomi back in 2017, so this is the company’s second experience. As Lei Jun, the founder of Xiaomi, said during the presentation, the company has been investing in developing its own processors for seven years. “This path is long and full of difficulties, but we have the patience and perseverance to overcome it, ” said the head of Xiaomi.

According to the Nikkei Asian Review, from 2019 to March this year, Xiaomi has invested in 34 companies, one way or another related to electronics and the production of components for mobile phones. Another 25 companies not related to the semiconductor sector have received investments from Xiaomi during this time. This kind of activity is carried out by a special division of the Hubei Xiaomi Changjiang Industry Fund Partnership, among the shareholders of Wuhan’s municipal authorities. This fund was founded in 2017 with a registered capital of $ 1.82 billion, but by 2019 had invested in just six companies related to the semiconductor sector. But already in 2020, the number of Xiaomi investment objects exceeded 30 companies, of which more than 20 were related to the semiconductor sector.

Isaiah Research experts even stated that Xiaomi would ship as many smartphones as Apple this year. Under the yoke of American sanctions, Huawei flew out of the top three segment leaders in the fourth quarter of last year. Xiaomi managed to increase smartphone shipments by 17.5% by the end of 2020, which is quite good despite the overall negative market dynamics. The company has so far managed to avoid US sanctions – a court decision thwarted the US authorities’ attempts to prohibit local investors from buying Xiaomi shares.