Xiaomi prepares its own smartphone chip. Another rift between the US and China

It is not only Huawei that is producing its first smartphone without American software and hardware, but also Xiaomi that is ready to produce the first smartphone processor of its own design. The roads of Chinese independence from the United States are getting thicker, then. And Xiaomi's move sends a pretty heavy signal to the world of microprocessors.

Until now, the Chinese consumer electronics manufacturer has always relied on foreign (American in particular) suppliers, such as Qualcomm and MediaTek. Now, however, it is ready to do it all in-house. Mass production of the in-house designed chip is expected to begin in 2025. A choice that underlines how Xiaomi is keen to join a growing number of large technology companies investing in semiconductors. But also how Beijing is pushing this technology race to the US leadership.

Chinese officials have repeatedly asked local companies to reduce their dependence on foreign technology as much as possible, and Xiaomi's move is likely to help achieve this.

For the Beijing-based company, this is a foray into another cutting-edge sector, in a year when Xiaomi has also invested heavily in electric vehicles.

It has to be said, however, that breaking into the smartphone chip business is no easy task. The robustness of Qualcomm, with its Snapdragon, is recognised globally. And companies like Intel (but also Nvidia) have not been able to penetrate and compete effectively. This is why Xiaomi's move will have to be assessed from a technological perspective.