Xiaomi founder Lei Jun on Thursday delivered his sixth annual speech in Beijing, themed “Change.” The speech reviewed the company’s transformation over the past five years and, for the first time, detailed the development of its in-house XRING chip. The event also saw the launch of the new Xiaomi 17 smartphone series.
Lei said the company’s shift was triggered by a period of reflection five years ago, when Xiaomi’s revenue surpassed RMB 200 billion ($28 billion), but progress in the premium segment stalled. After a systematic review, Xiaomi resolved to transition from an “internet company” to a “technology company,” establishing “technology as the foundation” as it’s guiding principle. The development of the XRING chip became a pivotal step in this strategy.
Why it matters: Last March, Xiaomi unveiled its own branded car, becoming the first technology company to span the three major sectors of smartphones, automobiles, and home appliances. This May, the company introduced the XRING O1, the first flagship chip built on the advanced 3nm process in mainland China.
Details: On Thursday, Xiaomi launched the Xiaomi 17 series, which the company says is designed to be a full competitor to the iPhone. Skipping the “16” name branding, the lineup includes the Xiaomi 17, 17 Pro, and 17 Pro Max.
- The 17 series debut Qualcomm’s latest Snapdragon 8 Elite Gen 5 mobile platform, built on TSMC’s 3nm process. The CPU performance is said to rival Apple’s A19 Pro (iPhone 17 series), while the GPU delivers a 34.6% boost. The Pro series also introduces the “Xiaomi Share Back Screen,” a rear-mounted display integrated into the camera module that enables personalized interaction and creative imaging.
- During the annual speech, Lei Jun looked back on Xiaomi’s transformation over the past five years, noting that it stemmed from a moment of deep reflection in 2020. At the time, despite surpassing RMB 200 billion ($28 billion) in annual revenue and entering the Fortune Global 500, Lei admitted he felt anxious. Facing intense competition from giants such as Apple, Samsung, and Huawei, Xiaomi saw little chance of overtaking them, according to Lei. Lei said, “Many team members are also fatigued and want to take a break, yet competition in the coming decade will only intensify.”
- However, to overcome these challenges, Lei Jun announced Xiaomi’s shift from an internet company to a technology company, committing RMB 200 billion ($28 billion) over the next five years to core technology development. He stressed that chips are critical to Xiaomi’s future, adding that developing an in-house smartphone SoC would take at least a decade and require a minimum investment of RMB 50 billion ($7 billion).
Context: In his annual speech, Lei Jun also reflected on Xiaomi’s earlier failures in chip development. For Xiaomi, chipmaking is a necessary path to establishing a foothold in the high-end market and it requires long-term investment and patience, according to Lei.
- In 2014, Xiaomi established Pinecone Electronics, a wholly owned subsidiary dedicated to developing in-house smartphone SoCs. In 2017, it launched the Surge S1, but the project struggled to enter the mid-to-low-end market, with only about 600,000 units of the Xiaomi 5C sold.
- Xiaomi then paused SoC development to build expertise, invest in core technologies, and recruit talent. In 2021, it relaunched its chipmaking plan with a new team. Last May, the XRING O1 chip completed its first wafer production and testing. It was then launched in May 2025 using a 3nm process and is now featured in the Xiaomi 15S Pro flagship smartphone and the Xiaomi Pad 7 Ultra.