As US pressure mounts, Xiaomi is increasing its investment in chips.

According to a recent report by a Chinese publication, the company has increased its stake in a number of at least 34 Chinese chip-related firms since 2019. In addition, it has tarnished the image of 25 other hardware-based companies.

Currently, Xiaomi’s main focus is on chip manufacturing, chip makers, startups, and even modern displays, camera lenses and automation, and precision equipment.

Xiaomi, like other Chinese tech companies, is working to build a more competitive tech manufacturing supply chain in the country. They are all working together to reduce dependence on foreign technology and strengthen their tech industry. Over the years, Xiaomi has become a fast-growing firm in China, competing with other giants such as Apple in its global smartphone market share.

Huawei was also at war with Apple and Samsung. However, US trade sanctions affected its market share, which in turn affected its market share. As a result, Huawei has focused on making its own chips and everything locally, which is why Xiaomi is doing it.

According to Xiaomi’s Founder, Lei Jun:

“It has been seven years since Xiaomi invested in chips. … [The C1] is only a small step in Xiaomi’s chip progress, but it marks a milestone for our image processing capability. The road to [Xiaomi’s chip ambition] is long and full of challenges, but we have the patience and perseverance to make it”