Chinese tech giant Xiaomi has stepped into two new arenas with a bold move. On its 15th anniversary, the company unveiled its first electric SUV and a powerful new smartphone chip, signaling a clear shift from budget gadgets to premium innovation.

During a livestreamed event in Beijing, Xiaomi CEO Lei Jun introduced the YU7 SUV and the Xring O1 chip. This launch is aimed at challenging top brands like Tesla, Apple, and Qualcomm. The YU7 is set to hit the market in July, offering high range, top speed, and advanced driving features.

These major releases mark Xiaomi’s strategy to become a leader in electric vehicles and chip design, supporting China’s goal of becoming self-reliant in key technologies.

YU7 SUV Targets Tesla and Porsche

Xiaomi’s new electric SUV, the YU7, is a sleek and powerful model. It offers a driving range of 835 kilometers on a full charge. The high-end version can go from 0 to 100 km/h in just over 3 seconds—a stat Lei says beats the Tesla Model Y and some Porsche cars.

Each model will come with advanced driver-assistance systems. However, pricing and pre-order details were not shared during the launch. Lei Jun noted on social media earlier that more information will come later.

The launch follows a setback in March when Xiaomi’s SU7 sedan was involved in a fatal accident. The crash killed three people and raised questions about the company’s self-driving claims. This tragedy led to a noticeable drop in EV orders in April.

Still, Xiaomi remains committed to its EV path, using this launch to show progress and resilience.

Xring O1 Chip Challenges Apple’s A18

Xiaomi’s chip journey began over a decade ago, and the company is now seeing results. The new Xring O1 chip is a 3-nanometer processor, built for speed and efficiency. While Xiaomi designed the chip, it is produced by Taiwan’s TSMC, the same company that works with Apple and Nvidia.

Lei Jun said the chip outperforms Apple’s A18 Pro in multiple benchmark tests. It also stays cooler during intense gaming, an area where many chips struggle.

The Xring O1 will power Xiaomi’s new 15S Pro smartphone, which is priced at 5,499 yuan (about $764). This puts Xiaomi ahead of rival Huawei, which cannot use TSMC due to U.S. sanctions.

Smaller chips often mean faster performance and lower power use. With this launch, Xiaomi positions itself at the cutting edge of mobile chip innovation.

Long-Term Investment in Tech Independence

Xiaomi is taking steps to reduce its reliance on foreign chipmakers like Qualcomm and MediaTek. With its own chips, Xiaomi can better control how hardware and software work together, similar to Apple’s successful model.

Lei Jun confirmed that Xiaomi has already spent 13.5 billion yuan (about $1.87 billion) on chip development. He added that the company will invest at least 50 billion yuan ($7 billion) in chip R&D over the next 10 years, with 6 billion yuan ($833 million) set aside for 2025 alone.

More than 2,500 engineers are now part of Xiaomi’s chip development team. Lei said the company has no choice but to compete in this area if it wants to stay ahead.

“We have no alternative in this chip race,” Lei said. “We must lead.”

Xiaomi Gains Government Praise

The Chinese government is backing Xiaomi’s progress. State media praised the company’s chip as a “breakthrough”, calling it a key step toward technological independence.

A commentary in a government newspaper said Xiaomi’s work proves that private innovation can lead even during tough global conditions.

“In the past year, Xiaomi has introduced big changes in electric vehicles and chipmaking,” the article noted. “This shows that hard work and vision can overcome global tech barriers.”

As global tensions rise over semiconductor access, Xiaomi’s new focus on chips and EVs shows smart planning. The U.S. and China continue to clash over tech policies, with recent U.S. warnings against Chinese AI chips drawing strong reactions from Beijing.

Still, Xiaomi’s success shows that companies can grow despite political hurdles. With the YU7 and Xring O1, Xiaomi is no longer just a phone maker. It is now a serious player in the next wave of innovation.