• The two companies intend to introduce their custom-made sub-6GHz 5G chipsets by the end of 2021.
• UNISOC has managed to raise around USD 817.20 million for its new venture.

Chinese electronics giants including Xiaomi Corp. and Guangdong Oppo Mobile Telecommunications Corp. (Oppo) have reportedly entered a joint venture agreement with UNISOC, a Shanghai-based semiconductor company, to manufacture in-house 5G chipsets.

Sources with relevant information stated that the two companies intend to introduce their custom-made sub-6GHz 5G chipsets by the end of 2021.

The move will allow Xiaomi and Oppo to take on prominent chip manufacturing giants such as Qualcomm and MediaTek while being prepared for any U.S. sanctions that could severely hamper their electronics sales in the country.

It is worth noting that Xiaomi had teased a new chipset before the launch of its flagship smartphone, the Mi 11 Ultra. However, the new chipset is a custom imaging processor which is like the Surge S1, Xiaomi’s first in-house chipset which was debuted back in 2017.

The recent development comes after China revealed its plans to boost its semiconductor manufacturing capabilities in a bid to reduce the dependency on other companies. For a while, several electronics manufacturers have long depended on Qualcomm and MediaTek for semiconductor chips.

However, the ongoing global semiconductor shortage crisis has compelled these manufacturers to opt for making several in-house arrangements, cited experts keeping track of the business trends.

If reports are to be believed, UNISOC has managed to raise around USD 817.20 million for its new venture, which will also be utilized to expand its current line of hardware. Moreover, a partnership with Oppo and Xiaomi could give the chipmaker a competitive edge in this business space.

Experts confirmed that it could also provide new opportunities for UNISOC to deliver chipsets to Chinese multinational technology giant Huawei Technologies Co. Ltd. which is currently facing U.S. sanctions.

Source Credits –

https://tech.hindustantimes.com/tech/news/xiaomi-oppo-working-on-in-house-5g-chips-to-launch-by-end-of-2021-71618027182882.html