China’s push for self-sufficiency in chips in the face of rising US restrictions is gaining momentum, with device maker Xiaomi working on an in-house mobile processor expected to be mass produced next year, Bloomberg reported.

Xiaomi aims to join Apple and Google in designing its own semiconductors for smartphones, and succeed where domestic rival Oppo failed, which closed down its chip design subsidiary Zeku in May 2023.

The biggest challenge for Xiaomi will be in finding a suitable contract manufacturer, as Taiwan Semiconductor Manufacturing Company faces rising pressure from US authorities to halt shipments of advanced chip to customers from mainland China.

Meanwhile, domestic leader Semiconductor Manufacturing International Corp is restricted from importing the most advanced chipmaking equipment, with Netherlands-based ASML unable to renew export licenses covering maintenance and spare parts for deep ultraviolet lithography equipment to clients in China.

Xiaomi has been pushing to develop its own semiconductors since 2019, when it acquired a 6 per cent stake in chip designer Shanghai-based VeriSilicon.

Its Q3 R&D expenses rose 20 per cent year-on-year to CNY6 billion ($826.8 million).