Xiaomi Sheds 'Internet Company' Label, Bets Billions on Chips and Core Tech

Xiaomi is redefining its corporate identity, with Chairman and Chief Executive Lei Jun declaring the company has completed a fundamental transformation from an internet-driven business into a "hardcore technology company" — and outlining plans to deepen that shift over the next five years.

Speaking at a high-level symposium on private-sector economic development, Lei said Xiaomi will prioritize breakthroughs in chip design, artificial intelligence and operating systems during the period covered by China's upcoming 15th Five-Year Plan. "Xiaomi's goals are highly aligned with the spirit of the 15th Five-Year Plan," he said, adding that he has never felt more confident about the company's direction or the broader business environment.

The strategic pivot is underpinned by substantial investment. Over the past five years, Xiaomi poured more than RMB 100 billion yuan (approximately US$13.8 billion) into research and development, a sustained push that the company says enabled it to achieve breakthroughs in foundational technologies. That effort culminated in the launch of its proprietary Xuanjie chip — unveiled during Lei's sixth annual personal address in September last year, themed "Change" — and the commercial debut of Xiaomi-branded electric vehicles.

Those milestones have positioned Xiaomi as what it describes as the first technology company to span three major consumer hardware categories: smartphones, automobiles and home appliances. The company frames this convergence under its "Human, Car, Home" ecosystem strategy, which it says has now fully closed the loop.

"The past five years have been a complete metamorphosis, both for Xiaomi and for me personally," Lei said in his annual address. "We spent five years of grounded effort reshaping Xiaomi's bones and soul."

The identity shift carries direct implications for how investors should evaluate the company. A hardware and deep-tech-oriented Xiaomi commands a different valuation framework than an internet platform, with capital expenditure cycles, chip development timelines and automotive market penetration becoming increasingly central metrics. With the next phase of investment focused on proprietary silicon and system software — areas that typically require years of runway before generating returns — the company is signaling that its transformation is still in progress rather than complete.