China's Xiaomi to invest almost $28 billion in core technology R&D over next five years

By Admin

23 May, 2025

In a bold move that underscores its ambition to become a global tech leader, Chinese tech giant Xiaomi has announced plans to invest 200 billion yuan (approximately $27.8 billion) in core technology research and development over the next five years.

The major announcement came from Lei Jun, Xiaomi's founder and CEO, during a high-profile event in Beijing. The occasion was more than just a declaration of investment—Xiaomi used the platform to showcase its expanding technological horizon with the launch of its first electric SUV and the unveiling of its advanced mobile chip, the Xring01.

A Strategic Leap Forward

This massive R&D commitment reflects Xiaomi’s clear strategic shift towards deep tech innovation and self-reliant development. With global competition tightening and geopolitical tensions affecting the tech supply chain, investing in proprietary technology is no longer a luxury—it's a necessity.

Lei Jun emphasized the company’s vision to become a technology-driven innovation powerhouse, with a strong focus on AI, smart manufacturing, automotive technology, and custom chipsets.

Diversification in Motion

The launch of Xiaomi’s first electric SUV signifies the company’s serious foray into the electric vehicle (EV) market, aligning it with other Chinese tech firms diving into smart mobility solutions. The new vehicle is expected to combine Xiaomi's expertise in smart devices with automotive engineering, promising a highly connected and AI-integrated driving experience.

Simultaneously, the debut of the Xring01 advanced mobile chip marks a significant step towards reducing dependency on third-party suppliers like Qualcomm and MediaTek. The development of proprietary chipsets will allow Xiaomi greater control over performance optimization, integration across devices, and future innovation scalability.

Looking Ahead

With this multi-billion dollar R&D plan, Xiaomi is making it clear that it is playing the long game. The company is betting big on future technologies that will define the next generation of consumer electronics, mobility, and artificial intelligence.

As Lei Jun noted, this investment is not just about staying competitive—it’s about leading the way in global innovation. If successfully executed, Xiaomi’s R&D strategy could redefine its position in the tech ecosystem and make it a formidable force well beyond smartphones.