Xiaomi Founder Lei Jun: To invest another 200 bln yuan in core technology R&D over next five years

Xiaomi Founder Lei Jun: To invest another 200 bln yuan in core technology R&D over next five years

Xiaomi's founder and CEO, Lei Jun, has announced a significant investment of 200 billion yuan ($28.6 billion) in core technology research and development (R&D) over the next five years. The announcement comes as the company celebrates its 15th anniversary and continues its strategic push to become a leading player in the semiconductor industry [1].

The investment is part of Xiaomi's broader initiative to reduce its reliance on foreign semiconductor suppliers and enhance its technological self-sufficiency. This move aligns with China's broader efforts to strengthen its technological capabilities and reduce dependence on third countries, particularly in the face of geopolitical tensions [2].

The latest announcement follows Xiaomi's unveiling of its in-house XRING 01 system-on-chip (SoC), manufactured on a 3-nanometre (nm) process. This marks Xiaomi's entry into the competitive semiconductor landscape and positions it alongside global tech giants like Apple, Samsung, and Huawei [3]. The XRING 01 chip is the company's latest attempt to enter the competitive semiconductor landscape following the underwhelming performance of its first chip, the Surge S1, launched in 2017.

Xiaomi's semiconductor ambitions have been bolstered by substantial R&D investments. Since 2021, the company has already invested 13.5 billion yuan ($1.9 billion) in R&D for the XRING 01 chip, supported by a team of over 2,500 employees [1]. This investment underscores the company's commitment to advancing proprietary chip design and related R&D initiatives.

The semiconductor sector is key for China, as it is a cornerstone of the country's plans to strengthen its technological self-sufficiency and reduce its dependence on third countries [2]. Xiaomi's investment in core technology R&D is expected to further solidify its position in the global tech market and contribute to China's broader technological advancements.

References:
[1] https://www.taipeitimes.com/News/biz/archives/2025/05/20/2003837165
[2] https://www.marketscreener.com/quote/stock/XIAOMI-CORPORATION-45271958/news/China-s-Xiaomi-to-invest-6-9-billion-in-a-decade-to-develop-own-chips-49995738/
[3] https://tribune.com.pk/story/2546835/xiaomi-unveils-flagship-chip-xring-01-plans-69b-investment-in-industry