Chinese Smartphone Companies Including Xiaomi Expand Investment in Semiconductor Industry

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] Chinese smartphone manufacturers such as Xiaomi and Oppo are increasingly investing in the semiconductor industry.

Global Times reported on the 31st, citing Qichacha, a Chinese corporate information company, that Changjiang Xiaomi Industrial Fund, an investment company under Xiaomi, has become a shareholder of Jiangsu Xinde Semiconductor Technology Co., Ltd.

Founded last year, Jiangsu Xinde Semiconductor Technology is a semiconductor design, manufacturing, and sales company focused on the manufacturing and design of 'seals' for semiconductor equipment.

Global Times explained that Xiaomi's recent investment is related to the expansion of semiconductor investments by other smartphone manufacturers Vivo and Oppo.

Vivo recently formed a team of several hundred members to begin developing its own semiconductors.

It is known to have recruited a large number of semiconductor experts by offering high salaries.

Vivo plans to equip its upcoming new product, the 'Vivo X70' series, with a self-developed 'high-performance Image Signal Processor (ISP)'.

Another smartphone manufacturer, Oppo, is also accelerating its own semiconductor development.

Oppo is reported to have established companies handling core application processors, short-range communication, 5G modems, and radio frequency.

Experts interpret that smartphone manufacturers have started developing their own semiconductors to differentiate themselves.

Information and communication expert Pu Liang said in an interview with Global Times, "As semiconductor design technology matures, it appears that companies have chosen to design their own semiconductors as a means to differentiate their products."

Meanwhile, according to market research firm CINNO Research, last month China's smartphone shipments were led by Oppo with 5.6 million units, followed by Vivo (5.3 million units), Honor (4 million units), which spun off from Huawei, Xiaomi (3.9 million units), and Apple (3 million units).

This content was produced with the assistance of AI translation services.