Xiaomi’s venture into automotive industry takes a significant stride as the company’s latest models, SU7 and SU7 Max, makes its debut in the latest catalog from China’s Ministry of Industry and Information Technology. The listed entity is Beijing Automotive Group Co., Ltd. (BAIC), marked by the distinctive “Beijing Xiaomi” emblem on the rear.

Sources from Xiaomi’s car supply chain suggest an imminent small-scale trial production phase, hinting at the first model’s market introduction in February 2024, reported by UDN News.

As per the disclosure, the cars boast a 3,000mm wheelbase. SU7 will feature Fdbatt’s lithium iron phosphate batteries, and SU7 Max is complemented by CATL’s ternary lithium batteries. Interestingly, the smart driving features will not include an optional optical radar package.

The catalog showed Xiaomi’s car brand as Xiaomi, while the declared corporate entity is Beijing Automotive Group Off-Road Vehicle Co., Ltd. (BAIC ORV). The product’s rear proudly displays “Beijing Xiaomi.”

Despite leveraging BAIC’s production qualifications, Xiaomi’s car has its declared production address at the site of its self-established factory.

The car factory’s construction unfolds in two phases, with the first, covering approximately 720,000 square meters, achieving an annual capacity of 150,000 vehicles by June 2023. The second phase is slated to commence in 2024, concluding in 2025. Public records confirm the successful acceptance inspection of Xiaomi’s car first phase factory workshops on June 12.

Xiaomi Group Chairman Jun Lei’s October announcement highlighted smooth progress, anticipating an official launch in the first half of 2024.

Since Lei’s announcement of Xiaomi’s foray into smart cars, industry observers have closely monitored Xiaomi’s car dynamics. Internal sources reveal that Xiaomi’s car will leverage ICT industry experience to enhance operational efficiency across research, production, supply, and sales.

Xiaomi plans a US$10 billion investment in the automotive sector over the next decade. Operating in a wholly-owned model, Xiaomi aims to provide users with a comprehensive smart ecosystem and enrich their smart living experiences.

At the October Xiaomi product launch, the introduction of the HyperOS was a highlight, applicable not only to mobile devices but also set to feature in Xiaomi’s cars.

A notable addition revealed by National Business Daily, citing a supplier who visited Xiaomi’s car factory, is that the four major manufacturing process production lines (stamping, welding, painting, and final assembly) in Xiaomi’s car first phase factory are operational, engaging in small-scale trial production. With mass production scheduled to commence in December, Xiaomi’s car is poised for market launch in February next year.

(Image: China’s Ministry of Industry and Information Technology)

The fusion of AIGC with end-user devices is highlighting the importance of personalized user experiences, cost efficiency, and faster response times in generative AI applications. Major companies like Lenovo and Xiaomi are ramping up their efforts in the development of edge AI, extending the generative AI wave from the cloud to the edge and end-user devices.

On October 24th, Lenovo hosted its 9th Lenovo Tech World 2023, announcing deepening collaborations with companies like Microsoft, NVIDIA, Intel, AMD, and Qualcomm in the areas of smart devices, infrastructure, and solutions. At the event, Lenovo also unveiled its first AI-powered PC. This compact AI model, designed for end-user applications, offers features such as photo editing, intelligent video editing, document editing, and auto task-solving based on user thought patterns. 

Smartphone manufacturers are also significantly extending their efforts into edge AI. Xiaomi recently announced their first use of Qualcomm Snapdragon 8 Gen 3, significantly enhancing their ability to handle LLMs at the end-user level. Xiaomi has also embedded AI LLMs into their HyperOS system to enhance user experiences.

During the 2023 vivo Developer Conference on November 1st, vivo introduced their self-developed Blue Heart model, offering five products with parameters ranging from billions to trillions, covering various core scenarios. Major smartphone manufacturers like Huawei, OPPO, and Honor are also actively engaged in developing LLMs.

Speeding up Practical Use of AI Models in Business

While integrating AI models into end-user devices enhances user experiences and boosts the consumer electronics market, it is equally significant for advancing the practical use of AI models. As reported by Jiwei, Jian Luan, the head of the AI Lab Big Model Team from Xiaomi, explains that large AI models have gain attention because they effectively drive the production of large-scale informational content. This is made possible through users’ extensive data, tasks, and parameter of AI model training. The next step in achieving lightweight models, to ensure effective operation on end-user devices, will be the main focus of industry development.

In fact, generative AI’s combination with smart terminal has several advantages:

1. Personal data will not be uploaded to the cloud, reducing privacy and data security risks.
2. AI models can connect to end-user databases and personal information, potentially transforming general AI LLMs into personalized small models, offering personalized services to individual users.
3. By compressing AI LLMs and optimizing end-user hardware and software, edge AI can reduce operating costs, enhance response times, and increase service efficiency.

Users often used to complain about the lack of intelligence in AI devices, stating that AI systems would reset to a blank state after each interaction. This is a common issue with cloud-based LLMs. Handling such concerns at the end-user device level can simplify the process.

In other words, the expansion of generative AI from the cloud to the edge integrates AI technology with hardware devices like PCs and smartphones. This is becoming a major trend in the commercial application and development of large AI models. It has the potential to enhance or resolve challenges in AI development related to personalization, security and privacy risks, high computing costs, subpar performance, and limited interactivity, thereby accelerating the commercial use of AI models.

Integrated Chips for End-User Devices: CPU+GPU+NPU

The lightweight transformation and localization of AI LLMs rely on advancements in chip technology. Leading manufacturers like Qualcomm, Intel, NVIDIA, AMD, and others have been introducing products in this direction. Qualcomm’s Snapdragon X Elite, the first processor in the Snapdragon X series designed for PCs, integrates a dedicated Neural Processing Unit (NPU) capable of supporting large-scale language models with billions of parameters.

The Snapdragon 8 Gen 3 platform supports over 20 AI LLMs from companies like Microsoft, Meta, OpenAI, Baidu, and others. Intel’s latest Meteor Lake processor integrates an NPU in PC processors for the first time, combining NPU with the processor’s AI capabilities to improve the efficiency of AI functions in PCs. NVIDIA and AMD also plan to launch PC chips based on Arm architecture in 2025 to enter the edge AI market.

Kedar Kondap, Senior Vice President and General Manager of Compute and Gaming Business at Qualcomm, emphasizes the advantages of LLM localization. He envisions highly intelligent PCs that actively understand user thoughts, provide privacy protection, and offer immediate responses. He highlights that addressing these needs at the end-user level provides several advantages compared to solving them in the cloud, such as simplifying complex processes and offering enhanced user experiences.

To meet the increased demand for AI computing when extending LLMs from the cloud to the edge and end-user devices, the integration of CPU+GPU+NPU is expected to be the future of processor development. This underscores the significance of Chiplet technology.

Feng Wu, Chief Engineer of Signal Integrity and Power Integrity at Sanechips/ZTE, explains that by employing Die to Die and Fabric interconnects, it is possible to densely and efficiently connect more computing units, achieving large-scale chip-level hyperscale computing.

Additionally, by connecting the CPU, GPU, and NPU at high speeds in the same system, chip-level heterogeneity enhances data transfer rates, reduces data access power, increases data processing speed, and lowers storage access power to meet the parameter requirements of LLMs.

(Image: Qualcomm)

The global smartphone market has seen a continuous decline for nine consecutive quarters, with only the foldable phone category remaining resilient and maintaining growth. Android smartphone manufacturers seem to view this category as a lifeline, having released a total of 13 new foldable phones in the past three months, setting a record for the number of new foldable phones introduced in half a year.

The intensified release of foldable phone models not only reflects the sense of urgency among smartphone manufacturers but also signifies a shift towards foldable technology in the mobile industry.

Currently, the foldable phone market is not as well-established as the traditional flat-screen market, presenting opportunities and variables. All Android manufacturers aim to leverage foldable phones to enhance their market positioning, achieve high-end differentiation, and engage in distinctive competition with Apple.

In fact, during the third quarter, there were subtle changes in the landscape of the foldable phone market in China according to IJIWEI’s report. Huawei, which once dominated the foldable phone market, has seen its market share decline. OPPO and Honor have managed to surpass Huawei in terms of sales volume in the flip-fold and single-product categories.

Next year, Huawei and Samsung plan to introduce more competitively priced foldable phones, and other Android manufacturers are expected to follow suit, driving accelerated expansion in the foldable phone market.

13 New Foldable Phones Launched in 3 Months

In the latter half of this year, smartphone manufacturers including Honor, OPPO, Xiaomi, Samsung, Huawei and Transsion, have been on a roll, releasing a remarkable 13 new foldable phones within just three months. This surge in foldable phone launches has almost doubled the number of foldable devices introduced in the first half of the year.

Each smartphone manufacturer has focused on different aspects of foldable phones. Honor has been particularly aggressive in the foldable phone market, introducing three new models in just four months, constantly pushing the boundaries of thinness. In July, Honor managed to reduce the thickness of foldable phones to the millimeter era with a body thickness of 9.9mm.

In September, the Honor V Purse, an outward folding phone, had a body thickness of 8.6mm in its folded state and weighed only 214g, once again setting a new record for slim foldable phones in the market. In October, the Honor Magic Vs2 weighed 229g, refreshing the record for slim large-sized inward folding phones.

On the other hand, OPPO and Xiaomi have emphasized the imaging performance of their foldable phones. In addition, Samsung, Huawei, Transsion, OnePlus, and other manufacturers have each introduced innovative models like the Galaxy Z Flip 5/Fold 5, Samsung W24/W24 Flip, OnePlus Open, Huawei Mate X5, and PHANTOM V Flip 5G, incorporating cutting-edge technology into foldable phones and significantly enhancing the foldable phone experience. This surge in foldable phone innovation has become one of the standout features in this year’s smartphone market.

Reasons for the Proliferation of Foldable Phones

Recent intense launches of new foldable phones by smartphone manufacturers reflect their strong sense of urgency in the Android market.

Global smartphone markets have been persistently sluggish, declining for nine consecutive quarters due to factors like inflation, market saturation, and longer upgrade cycles. Traditional flat smartphones are no longer able to drive sustained market growth, and the smartphone market is in need of new growth engines.

Foldable phones, with their differentiated form and innovative experiences, have the potential to stimulate consumer upgrades, and smartphone manufacturers have high hopes for them, leading to the frequent release of new foldable phone models.

Currently, foldable phones are considered high-end products, and the intense launch of new foldable phone models by Android smartphone manufacturers is aimed at achieving brand premiumization and establishing differentiation from Apple.

In an effort to break through the high-end market stronghold that Apple has established, Android smartphone manufacturers, led by Samsung, have not only upgraded their high-end flat smartphones but have also been actively promoting foldable phone innovations, different from the iPhone 15 series. They aim to stimulate consumer upgrades and attract more high-end users who value large-screen experiences.

Price Key to Boosting Foldable Smartphone Penetration

In recent months, Android smartphone manufacturers have been consistently releasing new foldable phone models, driving up foldable phone sales and contributing to increased market penetration in the high-end smartphone segment during the latter half of the year.

Supply chain sources have also revealed that Samsung is planning to bring foldable phones to the mid-range market next year, further reducing price barriers and making foldable phones more accessible to a broader range of consumers.

This year, the lowest price for foldable phones has already dropped to 3,659 yuan (RMB), setting a new record. In the upcoming year, more manufacturers will introduce higher-value foldable phone products, thus accelerating the broader adoption of foldable phones.

TrendForce believes that the driving force behind the foldable market’s expansion is the reduced costs and the expansion strategies of Chinese brands.

Looking at TrendForce’s estimated numbers , by 2023, shipments of foldable smartphones could skyrocket to an impressive 18.3 million units, marking a 43% YoY surge. However, this only captures a slim 1.6% of the year’s total smartphone market. Fast forward to 2024, a 38% growth is anticipated, translating to a hefty 25.2 million units and nudging the market share up to 2.2%.

Looking at the medium to long term, TrendForce believes the expansion of the foldable smartphone market is inevitable. By 2027, shipments could soar to a whopping 70 million units, seizing around 5% of the global smartphone market.

At the same time, foldable phone manufacturers are exploring new product forms and driving advancements in end-user applications. While there are certain limitations in terms of size for dual-foldable screen phones, many companies have already started working on triple-foldable screen products.

Recent reports from industry insiders suggest that Huawei’s development of a triple-foldable screen phone is progressing smoothly and may be ready for launch before March next year. It’s expected that two triple-foldable screen phones will be introduced in 2024.

On the other hand, Apple’s strategy for foldable devices differs from many Android phone manufacturers, as they are more focused on mature products and not in a hurry to release foldable phones.

According to TrendForce’s research, to date, Apple’s foray into foldables has been tepid due to Apple’s unwavering obsession with user experience.

Persistent challenges with foldable tech—think panel evenness and hinge design—might be holding them back. Still, achieving perfection with larger foldable panels is somewhat simpler than their smaller counterparts. The possibility for Apple to leapfrog right into medium-sized foldable products – like laptops or tablets – still remains.

(Photo credit: Phantom)

As reported by Jiwei, Beijing Xuanjie Technology Co., Ltd. has recently been established, and its legal representative is Xuezhong Zeng, who holds the position of Senior Vice President at Xiaomi Corporation. The company has registered capital amounting to 3 billion Yuan and is involved in activities related to IC design services and product sales, among other areas.

This marks the second “Xuanjie Technology” venture within the Xiaomi family. Back in December 2021, Shanghai Xuanjie Technology Co., Ltd. was established, also under the legal representation of Zeng. The company’s scope of operations encompasses technological services in the semiconductor field, integration of information systems, IC design and service related, and product sales. All of these are fully owned by X-Ring Limited.

Xiaomi, alongside OPPO and VIVO, among other Chinese smartphone brands, often find it challenging to independently develop advanced system on a chip (SoC) due to constraints in technical expertise and financial resources. Consequently, their primary focus on developing specialized chips like power management integrated circuits (PMICs) and Image Signal Processor (ISP), based on their collective experience in chip development.

Xiaomi stands out as the sole Chinese brand among these peers, having successfully launched its self-developed SoC in 2017, known as the “Surge S1,” which was integrated into the mid-range Xiaomi 5C. Nevertheless, the Xiaomi 5C fell short of expectations, mainly due to the absence of distinguishing features in the “Surge S1.” Many reviews highlighted subpar real-world performance of Xiaomi phones equipped with the S1 chip.

Subsequently, Xiaomi did not introduce a successor chip. In 2021, they introduced the ISP chip “Surge C1” and the charging chip “Surge P1.” In 2022, they rolled out the PMIC G1, emphasizing its significant potential in enhancing battery health, accurate battery life predictions, and overall smartphone battery performance.

Xiaomi’s President, Weibing Lu, has previously reaffirmed the company’s unwavering commitment to developing in-house chips. They fully acknowledge the long-term and intricate nature of chip development, respect the established development patterns in the industry, and remain prepared for a long-term strategy, all with the ultimate goal of enhancing the competitiveness and user experience of their end products.
(Image: Xiaomi)

Xiaomi’s subsidiary, Shanghai Xiaomi Jingming Technology Co., Ltd., was established recently with a registered capital of 10 million yuan (RMB). The company’s scope of operations includes car sales, car wash services, vehicle repair and maintenance, small and micro passenger car rental services, chauffeur services, and internet sales.

The establishment of this new company is closely tied to Xiaomi’s foray into the electric vehicle (EV) industry.

On March 30, 2021, during a Xiaomi product launch event, the company’s founder, Lei Jun, announced Xiaomi’s entry into the smart electric vehicle sector. Following this announcement, Xiaomi formally approved the EV project and committed to setting up a wholly-owned subsidiary to oversee its EV business. Xiaomi allocated an initial investment of 10 billion RMB for this venture, with a projected investment of 10 billion USD over the next decade.

In a recent development, Xiaomi’s Chairman, Lei Jun, expressed his optimism about Xiaomi’s electric vehicle project on October 25, stating that the project is progressing smoothly.

Sources familiar with the matter disclosed that Xiaomi’s electric vehicle project has multiple platform generations in development, with the first platform set for release in 2024 and the second in 2025.

Read more

•  [News] Xiaomi EV Reportedly Finalizes Battery Supplier List, CALB and CATL Chosen
• [News] Xiaomi Begins Trial Production of 50 Prototype Cars per Week

(Photo credit: Xiaomi’s Facebook)