Xiaomi Unveils 3nm Chip and YU7 SUV at 15th Anniversary Event

On May 22, during the 15th Anniversary Strategy and New Product Launch event, Lei Jun — Founder, Chairman, and CEO of Xiaomi Group — introduced several flagship products featuring this chip, including the Xiaomi 15S Pro smartphone and the Xiaomi Pad 7 Ultra. The event also marked the debut of Xiaomi’s first SUV under its automotive division: the Xiaomi YU7.

The Xuanjie O1 is Xiaomi’s first self-developed 3nm flagship SoC chip. With this release, Xiaomi becomes the first company in mainland China and the fourth globally capable of independently designing a 3nm flagship SoC, closing a gap in China’s high-end chip design capabilities.

From smartphones and AIoT to automotive and now chips, Lei Jun remarked: “On the path of hardcore tech, Xiaomi is a latecomer and a pursuer, but we believe that the strong will not always stay strong — latecomers will always have a chance.”

Xiaomi initiated its chip business in 2014, now approaching its 11th year. According to Lei Jun, the Surge project began in September 2014. In 2017, Xiaomi launched its first mobile chip, the Surge S1, aimed at the mid-to-high-end segment. However, the project faced setbacks and was paused. Xiaomi then shifted to developing smaller chips, including those for fast charging, battery management, imaging, and antenna enhancement.

In 2021, coinciding with its decision to enter the automotive sector, Xiaomi resumed development of large-scale SoCs under the internal codename “Xuanjie.” Over the past four years, the R&D investment in Xuanjie has exceeded RMB 13.5 billion, with a team of more than 2,500 people.

The Xuanjie O1 SoC is built on a second-generation 3nm process, comprising 19 billion transistors, a die area of 109 mm², and benchmark scores exceeding 3 million in lab tests, placing it in the industry’s top performance tier. The Xiaomi 15S Pro is powered by this chip, marking a restart of Xiaomi’s flagship SoC development journey.

In an industry shaped by the "strong get stronger" trend, the pairing of Xiaomi 15S Pro and Xuanjie O1 represents both a technological leap and a response to market pressures. Currently, only companies like Apple, Samsung, and Huawei design SoCs in-house. The advantages are clear: tighter integration of hardware and software, enhanced performance, reduced dependency on supply chains, and increased technological autonomy.

Lei Jun stated that the Xuanjie O1 features a 10-core CPU and 16-core GPU, delivering industry-leading performance and efficiency. He added: “Only by building high-end flagship SoCs can we truly master advanced chip technologies and better support our high-end strategy.”

According to Counterpoint’s Q4 2024 Global Smartphone SoC Revenue and Forecast Tracker, high-end Android SoC revenue globally rose 34% year-on-year in 2024.

Analysts at Everbright Securities pointed out that smartphone SoC chips — historically led by Qualcomm, MediaTek, and Huawei’s HiSilicon Kirin — are now joined by Xiaomi’s Xuanjie O1, bolstering China’s presence in the SoC sector and advancing its chip industry as a whole.

Another key announcement at the event was the debut of the Xiaomi YU7, the company’s first SUV.

Lei Jun explained that the name "YU7" draws from the concept of “riding with the wind.” The model comes in three versions: Standard, Pro, and Max, all featuring ultra-long range — with the Standard model offering 835 km of range. The vehicle is equipped with NVIDIA’s Thor chip, delivering 700 TOPS of computing power.

The YU7 also features a 200-meter-range LiDAR, one 4D millimeter-wave radar, 11 HD cameras, and 12 ultrasonic radars. Unlike the Xiaomi SU7, all YU7 versions are equipped with Xiaomi’s end-to-end assisted driving system and LiDAR as standard.

As for pricing, Lei Jun addressed public curiosity by stating: “RMB 199,000 is not possible.”

On the same day, Lei Jun posted on Weibo that the YU7 is expected to launch officially in July, but the pre-launch event would not include a final price or start pre-orders.

The mid-to-large electric SUV market is increasingly competitive, with trends leaning toward high-end, intelligent, and diversified offerings. The introduction of Xiaomi YU7 is expected to have a substantial impact on this segment.

The YU7 is regarded as a key product to expand Xiaomi's automotive presence. Based on market projections and its positioning, the YU7 will primarily compete with Tesla’s Model Y, NIO’s ES6, and Li Auto’s L7.

Industry experts note that Xiaomi is aiming to challenge the competition by combining flagship performance with a mid-range price and a Ferrari-inspired design — a strategy reminiscent of the Xiaomi SU7's market entry. Forecasts suggest that first-year sales of the YU7 could exceed 200,000 units. If Xiaomi replicates the SU7’s success model, it could significantly improve revenue structure in its automotive segment.