In early 2021, the US Department of Defense put Xiaomi on the so-called “black list” of companies that are associated with the Chinese government and the military. Recalling that for Huawei, everything also began with the inclusion in this ill-fated list, the media started talking about the fact that Xiaomi could face the same fate as a competitor. And amid growing US pressure, Xiaomi executives decided it was time to reduce dependence on foreign technology.
As part of the new strategy, Xiaomi is stepping up investments in the semiconductor industry. From 2019 to the present, Xiaomi has significantly increased its stakes in at least 34 Chinese chip design and manufacturing companies, according to Nikkei Asia. In addition, the manufacturer has invested in 25 other firms that are not related to semiconductors, but related to process equipment. Xiaomi is ready to financially support the manufacturers of the chips themselves and the equipment for their production, as well as companies associated with advanced display technologies, cameras and automation.
Interestingly, through its actions, Xiaomi supports China’s policy of creating a more competitive supply chain and its own high-tech manufacturing. In other words, the Chinese government and local companies are now focused on reducing dependence on foreign technology and strengthening their own technology industry.
“It’s been seven years since Xiaomi started investing in chips. And this is just a small step in the development of Xiaomi, but it marks an important milestone. The company’s road to chip independence is long and full of challenges, but we have the patience and perseverance to do it, ”said founder and CEO Lei Jun.
It’s worth noting that Xiaomi is one of the fastest growing tech companies in China. The brand is considered one of the leading smartphone manufacturers in the global market, along with Apple, Samsung and Huawei. And since Xiaomi has faced accusations from the United States against the Chinese military, the company needs to prepare a plan in case of tougher sanctions and a ban on the use of American components and technologies, so as not to lose the market following Huawei.
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