Xiaomi's ambitious plan to launch a custom 3nm chipset in 2025 faces a significant hurdle: sourcing 5G modems. The company will have to rely on overseas suppliers, which presents potential risks due to ongoing trade sanctions and pricing pressures.
While Xiaomi achieving this milestone would be a first for a Chinese company, procuring 5G modems from international partners could prove problematic, particularly given the current political climate and the Trump administration's focus on limiting China's technological advancements. This reliance on external suppliers could jeopardize Xiaomi's goal of competing with established players like Qualcomm and MediaTek in the 3nm market.
Potential partners for Xiaomi include Samsung, which has previously supplied Google with 5G modems. However, Qualcomm, the industry leader, might be reluctant to collaborate unless Xiaomi agrees to a significant price premium. Huawei, with its existing cross-licensing agreement with Xiaomi, offers another possibility, though their 5G technology may lack the power efficiency of Qualcomm or Samsung's offerings.
Trade sanctions could further complicate matters, potentially blocking Xiaomi's access to essential components. The situation remains uncertain, and the outcome will significantly impact Xiaomi's future in the competitive chipset market.
