Xiaomi began to actively invest in the production of components for smartphones, including chips.
This week Xiaomi unveiled its proprietary Surge C1 imaging chip, which it will install in smartphones. Many thought the company would introduce a sequel to the first mobile processor, the Surge S1, which was unveiled back in 2017.
It did not happen, but this does not mean at all that Xiaomi abandoned the idea of creating its own mobile processors.
Network sources claim that the company is actively investing in other Chinese firms involved in the production of electronics and components for mobile devices.
So, over the past two years, Xiaomi has sent funds to the development of 34 startups in the Middle Kingdom, which are engaged in the creation and production of microcircuits, displays, camera lenses, as well as all kinds of sensors.
Investments are made through the Hubei Xiaomi Changjiang Industry Fund Partnership, an affiliate fund of which the Wuhan city government is a shareholder. The fund itself was founded in 2017 and until 2019 was not particularly active in terms of investing in startups.
The main flow of investments in other companies fell in 2020 and this activity is associated with the sanctions that have hit Huawei. As a result, the negative example of Huawei spurred Xiaomi to actively invest in other Chinese companies in order to reduce dependence on foreign technologies.
Xiaomi itself claims that it began investing in chips another seven years and now it has taken only the first steps towards creating proprietary processors and only portends a “milestone for our image processing capabilities.” She understands that she still has a lot to do and it will take a lot of time, but Xiaomi is determined to achieve her intended goal.
All these steps only confirm the seriousness of Xiaomi’s ambition to become one of the largest smartphone manufacturers in the world. Analysts are already predicting that in 2021 the company will catch up with Apple in terms of smartphone shipments.
There is every reason to believe that it will only increase its presence and will increasingly invest in the production of components.