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Xiaomi gives up processor development, report says

Phate ZhangMarch 18, 2020

Xiaomi gives up processor development, report says-CnTechPost

After the failure of Pinecone Electronics, Xiaomi has put an end to its ambition of application processor (AP) development, Tencent Tech reported on Wednesday citing industry sources.

Instead, Xiaomi has turned to developing peripheral components such as Bluetooth and RF chips with lower thresholds to gradually expanded the technological mastery of its own products, the report said.

This also means that Xiaomi has abandoned the development of smartphone processors, and the rumored Surge S2 chip has no possibility of launch, the report said.

The news about Xiaomi's abandoning the independent development of application processor (AP) development comes from industry insiders "@冷希Dev", he said on Weibo (translated by Google):

Xiaomi and Huawei have very different layouts on the IC. After the failure of Pinecone Electronics, Xiaomi has put an end to the self-developed AP's prints, and has gradually expanded its technical mastery of its own products through the development of peripheral components such as Bluetooth and RF chips with lower thresholds. Huawei is an important choice High-end APs are developed by themselves and penetrate from top to bottom.

There is no commercial advantage or disadvantage, but the strategies are different.

Xiaomi is still pursuing the balance between product competitiveness and financial profit maximization. Decentralizing the IC business can not only avoid the long-term expenditure of huge funds for research and development, but also have some control and high bargaining power over the invested IC companies. For Huawei, its layout is still long-term technology, creating an independent supply chain, optimizing the technical structure, and even linking the entire IC industry.

From this point, we can actually observe the technical ideas of these two companies in the future.

Xiaomi gives up processor development, report says-CnTechPost

From this point of view, the rumored Pengpa S2 processor has been abandoned, there is no possibility of launch.

Although there have been previous reports that Xiaomi has made new progress on the Penpai chip on the mobile phone side, and it has been said that it is positioned at the mid-range, Tencent Tech quoted industry insiders as saying that the research and development team of Xiaomi has long been disbanded, and Xiaomi ’s subsidiary department has become an employee stock The main direction of the company in which Xiaomi has invested is also changed to peripheral ICs.

Therefore, combined with the news of "@冷希Dev" this time, it can be said that Xiaomi has indeed given up the road of independent research and development of AP, and there will be no new generation of Pengpa chips, the report said.

As for Xiaomi's abandonment of independent R & D AP development, in the view of "@ 冷 希 Dev", compared with Huawei's approach, there is no commercial advantage or disadvantage, but only different strategies.

And as another Weibo user @tiolato said in the comments, the two domestic brands of Xiaomi and Huawei are different in the development direction of the company. Xiaomi's choice is actually to serve his loT ecosystem and rely on his own the chip needs of the loT ecosystem promote the development of required components.

As for Huawei's choice, it is based on its own precipitation of communication technology and the need for communication to promote the development of core components. Both Xiaomi and Huawei are designed to consolidate their own moats and move from linear growth to dual S-types in the development stage. increase.

It is worth mentioning that "@冷希Dev" also disclosed in another Weibo that the target shipments of the two models of the Mi 10 series are 3 million units.

Although such a shipping target seems to be lower than many people's expectations, it is undoubtedly related to the pricing of the Xiaomi 10 series this time.

At the same time, due to the impact of the epidemic, the foundry of the industry chain encountered severe obstacles to resumption of work, which caused the production of new mobile phones to plummet and also affected the sales of the Xiaomi 10 series.

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#China Tech#Surge#Xiaomi
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