China’s Xiaomi said it will launch its YU7 electric sports utility vehicle on Thursday, alongside a new mobile chip and smartphone, as the company expands its presence in both the electric vehicle and semiconductor sectors.
The YU7 will be unveiled at an event where the company also plans to introduce the Xring O1 mobile chip and the Xiaomi 15S Pro smartphone, according to a post by founder and CEO Lei Jun on Weibo. The launch comes after Xiaomi did not showcase the YU7 at the Shanghai autoshow last month, disappointing fans.
Xiaomi began producing electric vehicles last year with the debut of the SU7 sedan, marking a shift from its core business of smartphones, home appliances, and smart devices. The SU7 has outsold Tesla’s Model 3 in China on a monthly basis since December, though orders reportedly declined after a fatal accident involving the vehicle in March.
In addition to its automotive efforts, Xiaomi is renewing its focus on custom chip development. Lei said the company has invested 13.5 billion yuan ($1.87 billion) in developing the Xring O1 chip and plans to invest at least 50 billion yuan more in chip design over the next decade, starting in 2025.
Xiaomi entered chip development in 2014 and launched its first mobile processor, the 28-nanometer Pengpai S1, in 2017. The chip debuted in the Xiaomi 5C smartphone. Following setbacks, the company pivoted to simpler components such as battery management and image processing chips. It resumed mobile chip development in 2021, the same year it began work on electric vehicles.
“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,” Lei said. “We will definitely go all out.”
