Silke Mayr China’s tech giant Xiaomi has unveiled a new electric SUV and a self-developed mobile chip, signaling a bold expansion in both the automotive and semiconductor sectors. At a livestreamed event in Beijing, CEO and founder Lei Jun introduced the YU7 SUV alongside the Xring O1 chip. The YU7 represents Xiaomi’s first entry into the SUV market, while the Xring O1 chip aims to compete directly with leading processors from Apple and Qualcomm. This event also marked Xiaomi’s 15th anniversary, emphasizing the company’s ongoing transformation and broader product vision, which includes new tablets and other devices.
Xiaomi faces challenges after a fatal crash in March involving its SU7 sedan raised concerns about its autonomous driving technology. This incident led to slowed orders in April and cast a shadow over Xiaomi’s push into electric vehicles. Despite this setback, the company remains committed to the EV market. The YU7 SUV is scheduled for release in July and promises a driving range of up to 835 kilometers (518 miles) on a single charge. Its top-tier model accelerates from 0 to 100 km/h (62 mph) in just over three seconds, outpacing competitors like the Tesla Model Y. All versions of the SUV will feature advanced driver-assistance software, highlighting Xiaomi’s focus on safety and innovation. Pricing and pre-order details were not disclosed at the launch, delaying immediate sales plans.
On the semiconductor front, Xiaomi revealed the Xring O1, a self-designed 3-nanometer chip developed with an investment of 13.5 billion yuan (approximately $1.87 billion). Lei Jun highlighted the chip’s superior performance compared to Apple’s A18 Pro, particularly noting its cooler operation during high-demand gaming sessions. The Xring O1 will power Xiaomi’s new 15S Pro smartphone, priced at 5,499 yuan ($764). Production will be handled by Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading chip manufacturer.
This move puts Xiaomi ahead of Huawei, which faces restrictions due to U.S. sanctions that limit its chip development to 7-nanometer technology. Smaller nanometer chips generally offer better energy efficiency and processing power, making Xiaomi’s advancement a significant step in China’s semiconductor race. China’s national broadcaster praised the chip launch as a breakthrough in technology, underscoring Xiaomi’s growing independence from external chip suppliers like Qualcomm and MediaTek. Designing in-house chips allows Xiaomi to control both hardware and software, similar to Apple’s business model. Beyond smartphones, the Xring chip will also power Xiaomi’s flagship tablets.
Lei Jun revealed that Xiaomi’s chip research began in 2014 and reaffirmed the company’s investment of 13.5 billion yuan in chip development by April 2025. He also pledged a decade-long commitment of at least 50 billion yuan (around $7 billion), including 6 billion yuan ($833 million) for 2025 alone, supported by a 2,500-strong research and development team.
State media in China celebrated Xiaomi’s technological strides, highlighting the company’s achievements in electric vehicles and semiconductor innovation as symbols of national resilience. An opinion piece emphasized that perseverance and innovation remain key to overcoming global challenges.
However, Xiaomi’s progress comes amid escalating tensions between the U.S. and China over semiconductor technology and trade policies. China criticized U.S. efforts to pressure companies to avoid Huawei’s AI chips and accused Washington of breaking commitments made at recent Geneva trade talks. Both countries had agreed to halt tariff increases and seek broader trade solutions within 90 days, but the chip sector remains a major point of contention.
Xiaomi’s launch of the YU7 SUV and Xring O1 chip reflects its growing ambition to lead in both the EV and semiconductor fields. The company’s strategic investments and technological breakthroughs position it as a key player in China’s evolving tech landscape.