Business

China’s Xiaomi is planning a next-gen phone chip, but won’t release one yearly like Apple

By Arjun Kharpal

Copyright cnbc

China's Xiaomi is planning a next-gen phone chip, but won't release one yearly like Apple

Xiaomi at the time committed to invest at least 50 billion yuan ($7 billion) over the next 10 years to develop its own chips.

Xu said that the company was “planning ahead” for its next generation of chip, but said she can’t promise it will release a new SoC each year.

“We are a a newcomer here, we need to learn and we need to plan,” Xu said.

Apple first launched its own system-on-chips in 2010 under the A series moniker. It has released a new A series semiconductor each year, with the latest one, called the A19, featured in the iPhone 17 models.

Xu revealed the thinking behind Xiaomi’s release timeline and how it relates to the company’s return on investment. There will be 1 million units of the XRing 01 shipped, Xu said, but Xiaomi will need to produce 10 million units per chip release for it to be a breakeven part of the business.

“So for us, we know we probably need to have ten years patience for the SoC to finally break even,” Xu told CNBC. “So at the first time, we just need to make sure the experience is good enough, the performance is good enough.”