SHENZHEN, China—Xiaomi Corp.’s unveiling of its self-developed flagship chip, the “Xuanjie O1,” has sparked intense discussion in the tech world, particularly amid escalating global competition. The chip, built on a cutting-edge 3-nanometer process, promises top-tier performance and is set for mass production, with an official launch scheduled for May 22 at 7 p.m. local time, according to Xiaomi’s founder, Lei Jun.
The announcement raises a key question: Why has Xiaomi seemingly sidestepped the U.S. sanctions that crippled Huawei Technologies Co.’s chip ambitions?
Unlike Huawei, which faced severe U.S. restrictions due to its advancements in 5G and chip design, Xiaomi’s chip strategy appears to thread a careful needle through a complex web of geopolitical and technological constraints. Industry analysts point to several factors that have allowed Xiaomi to advance its chip program without drawing Washington’s ire.
First, U.S. sanctions have primarily targeted AI chips, not consumer-grade system-on-chip (SoC) designs like Xiaomi’s Xuanjie O1. The U.S. measures focus on chips with more than 300 billion transistors, a threshold far above the 190 billion transistors in Xiaomi’s chip. This places Xiaomi’s efforts outside the scope of current restrictions.
Second, Xiaomi’s chip relies on technologies from U.S.-aligned firms like ARM Holdings PLC and Synopsys Inc., avoiding direct challenges to American technological dominance. Unlike Huawei, which developed its own 5G base stations and Kirin chips, Xiaomi has focused on consumer experience and device performance, steering clear of sensitive areas like 5G infrastructure or national security applications.
Third, Xiaomi’s supply chain strategy mitigates risks. The company maintains close ties with global semiconductor partners, securing technical support while avoiding restricted technologies. Its diversified ecosystem—spanning smartphones, smart home devices, and IoT products—further cushions it against supply chain disruptions, leveraging broad market demand to bolster its chip ambitions.
In contrast, Huawei’s aggressive push for self-reliance through its HiSilicon chips and HarmonyOS operating system threatened U.S. dominance in the global semiconductor supply chain. By reducing dependence on American technology, Huawei became a target for sanctions, which Washington justified by citing national security concerns, including potential military applications of Huawei’s technology.
The U.S. approach to Chinese tech firms is not uniform but selective, industry observers say. While Huawei faced a near-total blockade—cutting off access to advanced manufacturing, design tools, and 5G technology—Xiaomi has been permitted to use cutting-edge processes for consumer chips, provided it remains within the U.S.-led technology ecosystem. This dual strategy slows China’s technological rise while preserving profits for American firms and preventing Xiaomi from fully pivoting to domestic alternatives.
Xiaomi’s ability to launch the Xuanjie O1 reflects not just technical prowess but a calculated strategy to operate within the boundaries of U.S. policy. By prioritizing compliance and global partnerships, Xiaomi has avoided the fate of Huawei, which continues to grapple with supply chain constraints.
As global tech competition intensifies, Xiaomi’s approach offers a case study in balancing innovation with geopolitical realities. For Chinese tech firms, navigating this landscape—where breakthroughs must coexist with compliance—will remain a critical challenge.
This article is a translation copy of: from: https://mp.weixin.qq.com/s/yYt_SQtX9niK1WyJSi7btw