Chinese Giant Xiaomi Announces $6.9 Billion to Develop In-House Chips Amid US-China Trade Tensions
On May 19, Xiaomi (OTC:XIACF) CEO Lei Jun made a Weibo post announcing the company's intention to invest at least 50 billion yuan, around $6.9 billion, in the development of its own chips over the next ten years. This move is part of the Chinese technology giant's plans to expand its home-grown technology, spurred by the ongoing US-China trade war.
Pixabay/Public Domain
Since the US has revoked access to semiconductors for some Chinese companies, Xiaomi (OTC:XIACF) is doubling down on its efforts. According to a Xiaomi (OTC:XIACF) spokesperson, the investment will start in 2025.
CEO Lei Jun also announced that Xiaomi (OTC:XIACF) plans to release its Xring O1 on May 22. Xring O1 is a system-on-chip (SoC) based on a 3-nanometer manufacturing process, one of the most advanced on the market, and will power the company's upcoming smartphone.
A SoC is a semiconductor type that helps run devices like smartphones through various components. It can include wireless connectivity, memory, and other parts. For reference, the A18 Pro chips used in Apple's iPhone 16 Pro and Pro Max smartphones follow the same building procedure as Xring O1, bringing attention to its impending release.
While we acknowledge the potential of Xiaomi (OTC:XIACF) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than XIACF and that has 100x upside potential, check out our report about the .
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Through its domestic and overseas asset management business operated by Gopher Asset Management and Olive Asset Management, Noah manages private equity, public securities, real estate, multi-strategy and other investments denominated in RMB and other currencies. The Company also provides other businesses. For more information, please visit Noah at Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Noah may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in announcements, circulars or other publications made on the website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Noah's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. These statements include, but are not limited to, estimates regarding the sufficiency of Noah's cash and cash equivalents and liquidity risk. A number of factors could cause Noah's actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: its goals and strategies; its future business development, financial condition and results of operations; the expected growth of the wealth management and asset management market in China and internationally; its expectations regarding demand for and market acceptance of the products it distributes; investment risks associated with investment products distributed to Noah's investors, including the risk of default by counterparties or loss of value due to market or business conditions or misconduct by counterparties; its expectations regarding keeping and strengthening its relationships with key clients; relevant government policies and regulations relating to its industries; its ability to attract and retain qualified employees; its ability to stay abreast of market trends and technological advances; its plans to invest in research and development to enhance its product choices and service offerings; competition in its industries in China and internationally; general economic and business conditions in China; and its ability to effectively protect its intellectual property rights and not to infringe on the intellectual property rights of others. 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