Lei Jun’s Decade-Long Chip Dream: From Near Failure to Breakthrough

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In a speech on September 25, Xiaomi founder Lei Jun shared the story of the company’s persistent pursuit of developing its own chips.

Xiaomi’s semiconductor journey began in 2014 with the establishment of Pinecone Electronics, a joint venture with Leadcore Technology. Leveraging the SDR1860 platform technology, Xiaomi quickly entered processor development and launched its first self-developed SoC, the Surge S1, in 2017. Built on a 28nm process, the mid-range chip failed to gain market traction. Subsequent efforts on the Surge S2 faced multiple tape-out failures, leading Xiaomi to pause smartphone SoC development.

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Despite setbacks, Lei Jun remained committed. He emphasized that mastering chip technology is essential for global tech leaders. In 2018, Xiaomi shifted focus to smaller-scale chips while preserving its R&D team. After reflection, Lei concluded that only by targeting the high-end segment could a self-developed smartphone SoC succeed.

At a critical meeting in 2022, Lei posed a decisive question: would halting chip efforts leave Xiaomi with short-term savings but long-term regret? The team chose to continue, recognizing that even without immediate success, the endeavor would build a stronger R&D foundation.

Perseverance paid off. In 2024, Xiaomi successfully taped out Xuanjie O1, China’s first 3nm smartphone SoC. Officially launched on May 22, 2025, and debuting in the Xiaomi 15S Pro, the chip uses a second-generation 3nm process and features an innovative 10-core CPU architecture with Cortex-X925 and A725 cores, balancing performance and efficiency while enhancing graphics and AI capabilities.

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Lei Jun noted that the Xuanjie O1 is just the beginning. Xiaomi plans to invest ¥50 billion over at least ten years to deepen its presence in semiconductors.

ICgoodFind : Xiaomi’s journey from the Surge S1 to the Xuanjie O1 demonstrates resilience and R&D strength, positioning it for future breakthroughs in the global semiconductor industry.

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