The report adds that Xiaomi plans to design the APUs using standard ARM licensed technology. Specifications of the 'Rifle' processor are not known as of now but the company is expected to reveal it at the May event. Notably, the new in-house processors are said to be focused towards budget handsets, though it will also be used in other devices.
"Xiaomi plans to release its in-house Rifle-dubbed mobile APUs at a company event, which has been set to take place May," said an official at Xiaomi's component partner. No details were provided as to which company would actually be fabricating Xiaomi's chip designs.
One of the biggest impacts of Xiaomi introducing its own processors will be threat to demand of Qualcomm-based chipsets as well as Samsung made Exynos SoCs.
The report says that Xiaomi's processor will be used in the company's smartphones, tablets, and televisions as part of the company's strategy. The shift will also help Xiaomi to reduce reliance on chipmakers such as Qualcomm, Samsung, and MediaTek.
On being asked about competition from other chipmakers, the official said, "It's tough to cut Qualcomm reliance, immediately, given Qualcomm's long-time leadership in the processor chip market. However, Qualcomm's leadership in processors will be challenged especially in the budget handset business, resulting in Qualcomm feeling more pressure to cut its royalty rates to keep its licensing business running."
Xiaomi's move to start manufacturing its own processors comes as no surprise as top smartphone makers prefer using their own processors rather relying on third-party chipmakers. Some major manufacturers that use processors they design include Apple, Samsung, and Huawei.
The Chinese company recently confirmed a launch event on May 10 where it is expected to showcase the Max smartphone.
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