Xiaomi has taken a big step forward by revealing its new electric SUV and its first in-house smartphone chip. The company wants to show it can do more than make budget phones. At a major event in Beijing, Xiaomi founder Lei Jun introduced both the YU7 SUV and the Xring O1 chip. This moment came as the brand marked its 15th anniversary and aimed to challenge big global tech players.
Lei showed the Xring O1, a 3-nanometer chip that Xiaomi says can compete with top chips from Apple and Qualcomm. It was launched alongside Xiaomi’s first electric SUV and a few other products, including a tablet. The event came soon after a deadly car crash raised questions about the company’s self-driving goals, but Xiaomi has stayed focused on its plans.
The new YU7 SUV is set to hit the market in July. It can travel up to 835 kilometers on a single charge. That beats Tesla’s Model Y in range and speed. The high-end version can go from 0 to 100 km/h in just over three seconds. Standard models will have advanced driving support systems. Xiaomi has not shared the price or preorder date yet.
Earlier this year, the SU7 sedan—Xiaomi’s first electric vehicle—was involved in a crash that killed three people. That event led to public concern and a drop in orders. Despite the setback, Xiaomi is pushing forward with bold goals in the electric car market.
At the same event, Xiaomi also revealed its progress in making its own smartphone chip. The new Xring O1 chip is part of a larger plan to rely less on foreign chip makers. Xiaomi has already spent nearly 13.5 billion yuan ($1.87 billion) on this project. The chip is made by TSMC, a leading chip manufacturer based in Taiwan.
Xiaomi says the chip beats Apple’s A18 Pro in some tests, including how it handles heat during intense tasks like mobile gaming. It will be used in the new Xiaomi 15S Pro phone, which costs 5,499 yuan (around $764). The chip is also expected to power Xiaomi’s upcoming tablets.
This move helps Xiaomi stand out from rivals like Huawei. Due to U.S. trade bans, Huawei struggles to use the latest chip tech. Xiaomi, on the other hand, can still work with TSMC and produce modern 3-nanometer chips. The smaller the chip, the better it performs.
Xiaomi’s long-term goal is to stop depending on foreign chip makers like Qualcomm and MediaTek. Lei Jun said Xiaomi has been working on its own chip tech since 2014. He called this strategy a must. “In the chip race, retreat is not an option,” he said.
The company plans to spend at least 50 billion yuan (about $7 billion) on chip development over the next 10 years. This year alone, it will invest 6 billion yuan ($833 million) and work with a team of 2,500 researchers and engineers.
China’s state media has praised Xiaomi for showing how private companies can keep moving forward even when facing global pressure. One editorial said Xiaomi’s growth in electric vehicles and chip design shows that innovation can happen even during hard times.
Meanwhile, tensions between the U.S. and China continue over chip technology. Beijing has spoken out against U.S. warnings about using Huawei’s AI chips, accusing Washington of going back on trade deals. Xiaomi’s new products show how China is trying to become more independent in tech, while also giving the company a new image around the world.
With the launch of the YU7 SUV and the Xring O1 chip, Xiaomi is clearly aiming high. The company is no longer just a maker of cheap phones—it wants to lead in electric vehicles and advanced chip design, too. As it keeps growing, the world will be watching to see how far Xiaomi can go.