The absence of the YU7 at last month's Shanghai autoshow had sparked disappointment among enthusiasts eager to witness Xiaomi's latest foray into the automotive industry. However, Lei Jun, Xiaomi's founder and CEO, took to his Weibo account on Monday to officially announce the YU7's impending arrival. He confirmed that the SUV would headline the launch event, sharing the stage with the innovative Xring O1 mobile chip and the new Xiaomi 15S Pro smartphone.
Xiaomi's venture into EV manufacturing commenced last year with the introduction of the SU7 sedan, marking a significant expansion beyond its established portfolio of smartphones, household appliances, and smart gadgets, a domain it has dominated for the majority of its 15-year history. Notably, the SU7 sedan has demonstrated strong market traction, reportedly outselling Tesla's Model 3 on a monthly basis since December.
Despite this initial success, recent reports indicate a potential dip in orders for the SU7 following a tragic accident involving the vehicle in March. This highlights the intense scrutiny and challenges faced by new entrants in the competitive EV landscape.
Beyond the electric vehicle arena, Xiaomi is also intensifying its focus on the fiercely competitive Chinese smartphone market. Rivals such as Huawei and Apple are increasingly leveraging their own custom-designed chips to create tightly integrated ecosystems, offering enhanced user experiences and posing a significant challenge.
In a separate Weibo post, Lei Jun underscored Xiaomi's commitment to semiconductor innovation, revealing a substantial investment of 13.5 billion yuan ($1.87 billion) in the self-development of its advanced Xring O1 mobile chip. Furthermore, he outlined ambitious plans for future investment in chip design, earmarking at least 50 billion yuan over the next decade. A Xiaomi representative clarified to Reuters that this long-term investment timeline will commence in 2025.
Xiaomi's journey into chip design began in 2014, culminating in the launch of its first mobile processor, the 28-nanometer Pengpai S1, in 2017, which debuted in the Xiaomi 5C smartphone. However, the company subsequently shifted its focus to developing less complex chips, including those for battery management and image processing, citing "various setbacks." The decision to re-enter the mobile phone chip development arena in 2021 coincided with its strategic move into electric vehicle manufacturing.
Lei Jun articulated the company's unwavering ambition in the semiconductor space, stating, "Xiaomi has always had a chip dream because in order to become a great hard technology company, chips are a peak that must be climbed. We will definitely go all out." The upcoming launch event will serve as a crucial indicator of Xiaomi's progress in both the fiercely competitive EV market and its determined pursuit of self-sufficiency in core mobile technologies.