China’s technology giant Xiaomi has launched its first electric SUV, the YU7, alongside a powerful new smartphone chip called the Xring O1. The announcement, made by CEO Lei Jun in Beijing on Thursday, signals Xiaomi’s move beyond budget gadgets into premium markets.
The YU7 SUV, expected in July, offers an impressive 835-kilometer range per charge. The high-end model accelerates from 0 to 100 km/h in just over three seconds, reportedly outperforming Tesla’s Model Y and Porsche’s similar vehicles. Xiaomi has yet to reveal pricing or open pre-orders.
This launch also introduced Xiaomi’s new 15S Pro smartphone featuring the Xring O1 chip, built with advanced 3-nanometer technology. Lei Jun highlighted that the chip outperforms Apple’s A18 Pro in key tests, especially in managing heat during gaming sessions. The new smartphone is priced at 5,499 yuan ($764).
Xiaomi’s venture into electric vehicles comes amid heightened scrutiny following a tragic accident involving its SU7 model in March, which caused three deaths. This incident raised questions about the company’s autonomous driving technology and temporarily slowed orders.
Xiaomi’s expansion aligns with China’s broader push for technological independence. The company has invested heavily in chip development, spending 13.5 billion yuan ($1.87 billion) on the Xring O1 chip alone. While Xiaomi designs its chips, manufacturing is outsourced to Taiwan’s TSMC. This puts Xiaomi ahead of competitors like Huawei, which is limited by U.S. trade restrictions and remains on older chip technology.
Lei Jun announced plans to invest at least 50 billion yuan ($7 billion) over the next decade in chip research and development. In 2025 alone, Xiaomi will allocate 6 billion yuan ($833 million) and support a research team of 2,500 experts.
Chinese state media hailed Xiaomi’s chip breakthrough as a major milestone for domestic tech innovation. The firm aims to reduce reliance on foreign chip suppliers such as Qualcomm and MediaTek by integrating its proprietary technology across devices, including smartphones and tablets.
The launch event coincided with Xiaomi’s 15th anniversary and marks a significant step in its brand evolution. Xiaomi also revealed a new tablet and other gadgets during the live broadcast.
Tensions between China and the U.S. continue to affect the semiconductor industry. Beijing criticized Washington for warnings against using Chinese AI chips, accusing the former U.S. administration of disrupting trade talks aimed at easing tariffs and fostering dialogue.
Despite challenges, Xiaomi’s aggressive moves in electric vehicles and chip manufacturing highlight its ambition to become a leading player in global tech. The company’s strategy reflects China’s goal to strengthen its technology sector and reduce foreign dependency.