Chip Talk > Xiaomi's Bold Moves in EVs and Chips: A New Chapter in Innovation
Published May 27, 2025
Xiaomi, the Chinese tech giant renowned for its smartphones, has reported an impressive surge in its first-quarter revenues, reaching new heights. According to a report from the South China Morning Post, the company saw a 47.4% increase in revenue, totalling 111.2 billion yuan ($16.46 billion). This remarkable growth is attributed to Xiaomi's strategic initiatives in electric vehicles (EVs) and semiconductors.
The revenue from Xiaomi’s traditional smartphone and smart device segments reached 94.7 billion yuan, marking a 22.8% increase from the previous year. What's even more intriguing is the ambitious leap into EVs and AI-driven solutions, which contributed a remarkable 18.6 billion yuan to the company's earnings.
A significant portion of the new revenue stemmed from Xiaomi's burgeoning electric vehicle (EV) segment, accounting for 18.1 billion yuan. Despite these revenues, Xiaomi's push into new territories like EVs resulted in a 500 million yuan loss, reflecting the industry’s challenging entry barriers and the costly nature of research and development (R&D).
The company plans to continue this momentum, with a substantial budget for innovation, having pledged a staggering 30 billion yuan for R&D, a quarter of which will be devoted to artificial intelligence and related technologies.
Adding another layer to its multifaceted strategy, Xiaomi is tackling the semiconductor domain with the development of its own chips. This bold endeavor is not without its challenges. Recently, Xiaomi refuted claims that its 3-nm XRing O1 SoC is a modified ARM chip, emphasizing its focus on in-house design and development instead.
As reported by the South China Morning Post, Xiaomi clarified that while the chip utilizes ARM cores, it is not simply a customized ARM solution. It’s a product of over four years of dedicated R&D.
Xiaomi is not only venturing into hardware with its chip and EV development but also expanding its reach in AI technologies. Recently, they unveiled an AI reasoning model, the 7-billion parameter open-source MiMo, designed to enhance their offerings in smart devices and possibly future self-driving technology. This aligns with their broader objective to leverage AI, possibly setting the stage for integration within their EV line.
The foray into custom silicon positions Xiaomi uniquely in the tech landscape dominated by giants like Apple and Samsung. Their in-house strategy intends to provide a competitive edge, fostering more tailored solutions across their ecosystems.
In conclusion, Xiaomi's record earnings and strategic diversification underscore a transformative phase, pivoting from a smartphone-centric business to a fully-fledged technology powerhouse. This integrated focus on EVs, AI, and in-house semiconductor design echoes their vision of influencing global tech markets significantly. As they navigate these ventures, the industry will undoubtedly watch closely, anticipating the disruptive potential of Xiaomi’s innovations.
For more detailed insights, you can regularly check updates via sources like SCMP Technology.
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