Xiaomi reaffirms commitment to proprietary chipsets after rival Oppo’s recent closure of Zeku
- Xiaomi’s pledge came after its Chinese smartphone rival Oppo made a surprise move to shut down its chip design unit earlier this month
- The company launched its first in-house chipset, the Surge S1, in 2017
“Chip development plays a crucial role in Xiaomi’s core business. It is not about whether we are doing it or not; it’s that we have to do it,” the firm’s partner and president Lu Weibing said in a conference call with analysts and investors late on Wednesday.
“So, do not worry about our determination. This is an area that we will continue to invest in over the long run,” Lu said.
Xiaomi’s pledge came after its Chinese smartphone rival Oppo made a surprise move to shut down its chip design unit Zeku earlier this month, letting go of over 3,000 employees, citing “uncertainties in the global economy and smartphone market”.
Without referring specifically to Oppo and Zeku, Lu said in the call that “it’s quite a pity” that its peer decided to terminate its chip efforts. “It also fully shows the difficulties in the chip business, and I would like to applaud them for their bravery and innovation.”
Xiaomi has also “paid a high price and learned hard lessons” in its own chip development that started in 2014, Lu said, stressing the importance of patience in assessing the long-term investment needed in the journey.