Xiaomi founder Lei Jun confirms YU7 SUV, Xring O1 chip and Xiaomi 15S Pro release

China's Xiaomi is set to unveil its much-anticipated YU7 electric sports utility vehicle (SUV) this Thursday, alongside a range of new products including a mobile chip developed in-house, the company announced.

Market analysts have positioned the YU7 as a potential rival to Tesla’s bestselling Model Y in China, the world's largest automotive market. Xiaomi had disappointed enthusiasts last month when it chose not to reveal the vehicle at the Shanghai Auto Show.

Lei Jun, Xiaomi’s founder and chief executive, shared on his Weibo account that the YU7 launch event would also feature the introduction of the Xring O1 mobile chip and the new Xiaomi 15S Pro smartphone.

Having entered the electric vehicle (EV) sector last year with the release of the SU7 sedan, Xiaomi has expanded beyond its traditional focus on smartphones, household appliances, and smart gadgets, which it has sold for over 15 years. Since December, the SU7 sedan has been outselling Tesla’s Model 3 on a monthly basis.

However, despite ongoing strong sales, orders for the SU7 have recently declined following a fatal accident involving the model in March.

Beyond the EV market, China’s smartphone industry remains fiercely competitive, with rivals such as Huawei and Apple pushing their own custom-designed chips to create highly integrated ecosystems that enhance user experience.

In another Weibo update, Lei disclosed that Xiaomi has invested 13.5 billion yuan (approximately $1.87 billion) in developing its advanced mobile chip, the Xring O1. Furthermore, the company intends to allocate at least 50 billion yuan more to chip design over the next decade.

A Xiaomi spokesperson told Reuters that the 50 billion yuan investment would commence in 2025.

Xiaomi began chip design in 2014, launching its first mobile processor—the 28-nanometre Pengpai S1—in 2017, which powered the Xiaomi 5C smartphone. Following some setbacks, the company shifted its focus to simpler chips such as battery management and image processors.

Lei emphasised the strategic importance of chips to Xiaomi’s ambitions, stating: “Xiaomi has always had a chip dream because to become a great hard technology company, chips are a peak that must be climbed. We will definitely go all out.”

(With inputs from Reuters)