By Kate Yuan

(JW Insights) Oct 31 -- Chinese smartphone giant Xiaomi has set up a new chip company with a registered capital of RMB3 billion ($410 million) in Beijing, according to Tianyancha, provider of Chinese corporation data and due diligence platform.

The company, Beijing Xuanjie Technology (玄戒技术), was recently established, with the legal representative being Zeng Xuezong, senior vice president of Xiaomi. Its business scope includes integrated circuit design, services, and sales.

Beijing Xuanjie was founded after Shanghai Xuanjie, which was set up in December 2021 with a registered capital of RMB1.5 billion ($205 million). Zeng Xuezong is also the legal representative.

Shanghai Xuanjie focuses on technical services in the semiconductor technology field, information system integration services, and integrated circuit design, sales, and related services. It is wholly owned by X-Ring Limited.

In June of this year, Shanghai Xuanjie increased its registered capital from RMB1.5 billion to RMB1.92 billion ($262.39 million), adding RMB420 million ($57.4 million).

Lu Weibing, president of Xiaomi Group, previously stated that Xiaomi's commitment to self-developed chips will not waver. They have fully recognized the long-term and complex nature of chip investment, and are ready for a 10-20 years of protracted battle. In addition, the company said developing its own chips is to enhance the competitiveness and user experience of its products.