In a significant development for the smartphone industry, negotiations between Xiaomi and Qualcomm have reportedly broken down, resulting in the Chinese tech giant losing its exclusive priority for the launch of all series of Qualcomm chips, including the upcoming Snapdragon 8gen4. The news comes as a surprise to many, considering the long-standing partnership between the two companies.
Background
The negotiations between Xiaomi and Qualcomm have been ongoing for some time, with two rounds having already failed. The breakdown in talks means that Xiaomi will no longer enjoy the absolute priority for the launch of new Qualcomm chips, nor will it have a protected period for exclusivity.
Key Reasons for the Breakdown
There are two primary reasons for the failed negotiations. First, despite a series of discussions, Xiaomi has remained steadfast in its decision to use its proprietary Soc in its flagship models. This decision has been a sticking point for Qualcomm, which had hoped to secure Xiaomi’s commitment to using its chips exclusively.
Second, in an attempt to reach a compromise, Qualcomm proposed allowing Xiaomi to use its baseband technology in the Soc. However, during the engineering trials, the performance of Qualcomm’s baseband failed to outperform those of MediaTek and Ziguang Zhenrui. This led to the negotiations being declared a failure.
Implications for Xiaomi
The loss of exclusive launch rights for Qualcomm chips is a significant blow to Xiaomi, which has long relied on the high-performance chips to power its smartphones. The company will now have to seek alternative solutions for its旗舰 models, potentially impacting both performance and cost.
Xiaomi’s Chip Development Efforts
Despite the setback with Qualcomm, Xiaomi has been actively investing in its own chip development efforts. Here are some key details:
-
Shanghai Chip Technology Co., Ltd.: Established on December 7, 2021, with a registered capital of 1.9 billion yuan, this company is 100% owned by Beijing Chip Technology Co., Ltd. The法定代表人 (Legal Representative) is Zeng Xuezong, and the supervisor is Liu De. The company’s business scope includes technology services in the fields of electronics, communications, information technology, and semiconductor technology.
According to public information, over 70% of the employees at Shanghai Chip Technology enjoy a monthly salary of more than 50,000 yuan. The company has seen significant expansion in its research and development team since 2021, with new hires primarily from prestigious institutions such as Tsinghua University and Zhejiang University. The current headcount stands at 3,000.
-
Post-Philippines Subsidiary Closure: Following the closure of its chip design subsidiary, Philippians, Xiaomi’s commitment to developing its own chips remains unwavering. In June of the same year, Lei Jun, the company’s founder, announced an additional investment in Shanghai Chip Technology, increasing its registered capital from 1.5 billion yuan to 1.92 billion yuan. In October, Beijing Chip Technology was established with a registered capital of 3 billion yuan.
-
Flagship Soc Development: Xiaomi’s flagship Soc, confirmed to have successfully taped out in July at TSMC using a 4nm process, is set to power the Mi 15S Pro and an unknown model scheduled for release by the end of 2024 or early 2025. The Soc features a CPU core configuration of one Arm Cortex-X3 supercore, three Cortex-A715 mid-cores, and four Cortex-A510 little cores, with performance positioned between the Snapdragon 8+ and 8gen2.
Conclusion
The breakdown in negotiations between Xiaomi and Qualcomm marks a significant shift in the smartphone chip market. While it presents challenges for Xiaomi, the company’s ongoing investment in its own chip development suggests a strategic pivot towards self-reliance. As the industry watches, the implications of this development for both Xiaomi and its competitors remain to be seen.
Views: 0