Chinese consumer electronics giant Xiaomi announced two major new products on Thursday during a livestreamed event in Beijing. The company revealed its first electric SUV, the YU7, and debuted its own smartphone chip, the Xring O1. These launches mark Xiaomi’s efforts to expand its footprint in affordable devices and enhance its technological independence.
Lei Jun, Xiaomi’s founder and CEO, presented the YU7 SUV and the Xring O1 chip, which is built on advanced 3-nanometer technology. The chip aims to rival the top smartphone processors made by Apple and Qualcomm. The event also featured the launch of other products, including a new tablet, as Xiaomi celebrated its 15th anniversary with a fresh brand image.
Details of the YU7 Electric SUV
The YU7 will be available for sale starting in July. It offers an impressive driving range of up to 835 kilometers (518 miles) on a single charge. The highest-spec model accelerates from 0 to 100 km/h (62 mph) in just over three seconds. According to Lei Jun, this performance exceeds that of comparable models such as the Tesla Model Y and Porsche SUVs.
Standard versions of the YU7 will include advanced driver assistance software. However, Xiaomi did not disclose pricing or pre-order details during the launch. Lei Jun later confirmed on social media that these details would be announced at a future date.
Challenges Facing Xiaomi’s Automotive Business
Xiaomi’s entry into electric vehicles has faced scrutiny recently. In March, the company’s first electric car, the SU7 sedan, was involved in a fatal crash in eastern China, resulting in three deaths. The incident raised concerns about Xiaomi’s promotion of its autonomous driving technology. It also caused a temporary drop in orders the following month, casting a shadow over the company’s EV ambitions.
Xiaomi’s Semiconductor Ambitions
Lei Jun emphasized the importance of Xiaomi’s semiconductor business during the event. The company has invested 13.5 billion yuan (approximately $1.87 billion) in developing the Xring O1 chip. Unlike companies such as Apple and Nvidia, Xiaomi focuses solely on chip design and outsources manufacturing to Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC), the world’s largest chip manufacturer.
The Xring O1 is claimed to outperform Apple’s A18 Pro chip in several areas. It reportedly runs cooler during intensive gaming sessions and delivers strong performance. This chip will be featured in Xiaomi’s new 15S Pro smartphone, priced at 5,499 yuan (about $764).
Strategic Advantage in Chip Technology
Xiaomi’s success with a 3-nanometer chip places it ahead of other Chinese tech giants like Huawei, which is restricted by U.S. sanctions from working with TSMC and has struggled to produce chips at 7 nanometers or below. Smaller nanometer chips indicate more advanced and efficient manufacturing technology, improving power and performance.
China’s state broadcaster, China Central Television, praised Xiaomi’s chip as a “breakthrough” on social media earlier this week.
Reducing Dependence on Foreign Technology
Currently, Xiaomi still uses chips from Qualcomm and MediaTek for some smartphones. However, the company aims to reduce this reliance by designing its own chips. This move is part of Xiaomi’s goal to follow Apple’s vertically integrated model, which combines hardware and software design. The Xring chip will also power Xiaomi’s other flagship devices, such as tablets.
Xiaomi’s Long-Term Investment in Chips
Xiaomi’s chip development journey began in 2014. Lei Jun shared on social media that the company has invested heavily in this field, with 13.5 billion yuan committed as of April 2025. He said the company has “no choice” but to invest in chip technology amid ongoing global “chip wars.”
Looking ahead, Xiaomi plans to invest at least 50 billion yuan ($7 billion) over the next decade. The company currently employs 2,500 researchers and intends to spend at least 6 billion yuan ($833 million) on chip research and development this year alone.
Recognition of Xiaomi’s Innovation
An editorial by China’s official People’s Daily praised Xiaomi’s chip achievements. It said the company demonstrates how private enterprises can innovate in a complex global environment. Xiaomi echoed this sentiment, saying its breakthroughs in new energy vehicles and domestic chips prove that “there is no mountain that cannot be climbed” with determination and effort.
Geopolitical Context: US-China Tech Rivalry
The launch comes amid increasing tension between China and the United States over semiconductor access. Recently, Beijing criticized Washington’s warnings against using AI chips from Huawei. China accused the former U.S. administration of undermining recent trade negotiations in Geneva. These talks had aimed to temporarily lift tariffs and finalize a broader agreement within 90 days.
Xiaomi’s unveiling of the YU7 SUV and Xring O1 chip signals its ambition to grow beyond consumer electronics. With heavy investments in chip design and electric vehicles, the company seeks to reduce foreign dependence and compete on a global scale. However, challenges such as safety concerns and geopolitical tensions remain key factors shaping Xiaomi’s future.
