Chinese device maker Xiaomi acquired a 6 per cent stake in chip designer VeriSilicon, as the company pushes ahead with a long-term plan to develop its own semiconductors.
Reuters cited a filing to China Securities Regulatory Commission which revealed the investment, initially made in June and Xiaomi confirmed the move to the publication. Financial details were not disclosed.
Shanghai-based VeriSilicon’s biggest investor is the China Integrated Circuit Industry Investment Fund, which targets the country’s chip industry.
China’s government has identified the sector as one it wants to become more self-reliant in, as part of its Made in China 2025 initiative.
VeriSilicon operates R&D centres in its home market and the US, and works as a contractor to other chip companies, aiding the completion of semiconductor design.
For Xiaomi, the investment follows the establishment of a separate semiconductor division in 2014.
Through the unit, it launched its first chip, the Surge S1 which featured in its Mi 5 smartphone.
It was then revealed the company would spin-off the division into a subsidiary, dubbed Big Fish, focused on making chips for IoT devices.
As well as Xiaomi, rival Chinese device maker Huawei also has its own chip unit, HiSilicon, which makes Kirin processors for its smartphones.Subscribe to our daily newsletter Back