Xiaomi begins mass production of in-house smartphone chips

Xiaomi has announced the start of mass production for its internally developed smartphone processors. Produced in collaboration with TSMC, the move is a strategic effort to reduce reliance on external chip designers and mitigate supply chain and geopolitical risks.

In its financial reporting for the second quarter ending June 30, 2026, the company reported a 9.9% increase in total revenue to 108.9 billion yuan, with adjusted net profit rising 2.4% to 6.2 billion yuan. The smartphone and AIoT segments remain the primary revenue drivers, contributing 84 billion yuan. Xiaomi maintained its position among the world’s top three smartphone manufacturers, shipping 31.2 million units during the period.

The company is also seeing growth in its electric vehicle and new initiatives segment, which grew 17.1% year-on-year to 24.9 billion yuan. Within this, the smart vehicle business accounted for 23.9 billion yuan. Additionally, Xiaomi increased its research and development spending by 18.9% to 9.2 billion yuan for the quarter.