Xiaomi Set to Launch In-House 3nm Chipset by 2025
Xiaomi is making headlines with its ambitious plans to introduce a custom 3nm chipset for smartphones and tablets, projected for launch in 2025. This initiative marks a significant advancement as it would be the first instance of a Chinese company unveiling such an in-house solution using advanced lithography technology. However, the journey to realization is fraught with challenges, particularly against the backdrop of stringent U.S. restrictions aimed at curtailing China’s technological progress.
Challenges in Securing 5G Modem Supply
One of the most pressing obstacles facing Xiaomi is the procurement of 5G modems from international suppliers. The announcement of a China-based firm venturing into the 3nm System on a Chip (SoC) space could exacerbate tensions with U.S. authorities, especially if new suppliers emerge from overseas. The potential fallout from these developments could complicate Xiaomi’s efforts to vie with established competitors like Qualcomm and MediaTek in the cutting-edge chipset landscape.
Possible Partnerships Amid Trade Sanctions
A recent post from industry analyst TrendForce shed light on Xiaomi’s reliance on foreign manufacturers for 5G modems. Although specific entities were not disclosed, longstanding industry trends provide insights into possible partnerships. Samsung, for instance, has previously engaged with tech companies, supplying its Exynos 5400 5G modems to Google for the Pixel 9 series. This existing relationship showcases Samsung’s capability to form strategic alliances with Chinese corporations.
Qualcomm’s Pricing Dilemma
While Xiaomi may prefer to source parts from Qualcomm due to its industry-leading reputation, the reality may be more complicated. Qualcomm has a history of premium pricing, especially for their chipsets. Should Xiaomi’s venture into custom 3nm chipsets threaten Qualcomm’s market position, the latter might impose high costs for its Snapdragon 5G modems, making this partnership less appealing for Xiaomi.
Exploring Alternatives: Huawei’s Position
Another potential collaborator for Xiaomi is Huawei. Industry analyst Samir Khazaka highlighted that Huawei has previously engaged in a cross-licensing agreement with Xiaomi to share 5G technologies. However, the downside is that Huawei’s baseband chips, manufactured using SMIC’s older 7nm lithography, may not match the efficiency of Qualcomm’s or Samsung’s offerings. Consequently, integrating these chips with Xiaomi’s advanced 3nm chipset could present operational mismatches.
The Road Ahead: Continuous Monitoring of Trade Dynamics
Nevertheless, Huawei remains a viable option, particularly if ongoing trade sanctions hinder Xiaomi’s ability to secure international 5G modems. As the situation evolves, vigilance from the U.S. government regarding Xiaomi’s strategies is expected. Industry observers are encouraged to stay tuned for further updates on this developing narrative.
#Xiaomi‘s self-developed processor chip entering mass production marks a significant milestone for domestic innovation. However, the company still relies on overseas suppliers for modems. Reports suggest that Xiaomi plans to integrate its self-developed chips into smartphones and… https://t.co/veKodNc3UI
— TrendForce (@trendforce) November 28, 2024
For further details, refer to the source: TrendForce.
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