Xiaomi plans to make waves in tech and the car industry. YU Cars will release the YU7 SUV on Thursday, hoping to compete with Tesla’s Model Y, which is especially popular in China. Still, Xiaomi is planning much more. They have released a new advanced mobile chip to position themselves for success in both cars and the mobile industry. This is Xiaomi trying to become a technology giant that can compete with the top companies in the world.

Xiaomi could now find a gap in the EV field in China

Xiaomi plans to spend $1.87 billion on the Xring O1 chip and $7 billion more during the following decade. Xiaomi is working toward developing its own technology rather than depending on other companies. Although Xiaomi encountered challenges when making chips before, now that they are focusing more, it will help them battle Apple and Huawei in the market.

Xiaomi caught many people’s attention last year when its SU7 sedan sold more than the Model 3 from Tesla each month. Nonetheless, an SU7 accident in March spoiled its reputation and made people more reluctant to order more planes. Having the YU7 on the market is more significant for Xiaomi than releasing a new vehicle, as it lets the brand test its regained trust and compete with the Model Y, which sells well in China. Xiaomi will only be successful if it provides safety, innovations and value to regain customers in a market filled with strong competitors.

The Effect on Xiaomi’s Outlook

Xiaomi’s decisions to build both electric vehicles and chips prove that it seeks to compete as a prominent player in technology. Trying to produce cars and design chips is expensive, and many problems can arise in this field. Should Xiaomi be successful, it would compete with Tesla in China and play a bigger role in tech by making the chips for its devices. Launching the Xiaomi YU7 will show how successfully Xiaomi is able to expand and hold its own in the tech industry. However, this launch will make it clear if Xiaomi has what it takes to pursue its main goals and set a new course in tech and cars. Currently, much attention is being given to Xiaomi as it paves the way for this new future.