Xiaomi continues to revamp chip strategy, invests in VeriSilicon

Xiaomi's chip-making plans appeared to be in backseat during the past couple of years, but now the company's approach to buy 6% stake in the chip designer company, Verisilicon Holdings Co Ltd has initiated its goal to become independent in the semiconductor segment.
Such a strategic stake in Verisilicon puts Xiaomi into the second spot of largest external shareholders of the company.
Also, the latest investment comes when the Chinese government perceives a goal of becoming self-reliant in the chipmaking sector, under its "Made in China 2025" initiative.
The information came across when Verisilicon's filing to the China Securities Regulatory Commission (CSRC) was published online to reveal Xiaomi's stake of 6% in the company. The investment was made in the month of June, though the exact monetary value was not disclosed by Xiaomi Corp.
As Xiaomi grabs the second spot, the first spot of largest external shareholder in Verisilicon is held by 'China Integrated Circuit Industry Investment Fund', a centralized nation-level fund for the domestic semiconductor industry. It is popularly known as the "The Big Fund".
Despite having very less success in chips, Xiaomi emerged as the fourth-biggest smartphone seller worldwide in the first quarter of 2019. Reportedly, the company launched a semiconductor division in 2014 and no later in just three years it announced the first system-on-a-chip, popularly known as the 'Surge S1'. Though the chip featured in Xiaomi's Mi 5 smartphone, it was not rolled out widely.
About Verisilicon:
The Chinese firm is headquartered in Shanghai and has research and development centers situated in China and in the United States. It provides world class system on a chip (SoC) and system in a Package (SiP) solutions, as being a silicon platform as a service (SiPaaS) company. The company generally works on a contract with other chip companies and supports them with the supply of additional parts for completing the semiconductor design.
Source Credits:
https://www.hindustantimes.com/tech/xiaomi-invests-in-semiconductor-designer-verisilicon-as-it-looks-to-revamp-chip-strategy/story-tzqIQs6kjTl526Z1nXfJZN.html

Pranali Mehta:

Pranali Mehta boasts of over three years of experience as a content writer. Having completed her graduation in chemical engineering, she worked as safety & environment associate in a chemical company for a year. Harnessing her passion for writing however, Pranali decided to pursue content development as a full-time career and has written several diverse articles. Her other interests include reading, binge-watching movies & web series, gardening and home décor.