Semiconductors climb on board to help shift smartphone chipsets in-house
Chinese smartphone maker Xiaomi will release the company's first in-house chipset in its Mi 5c smartphone, which is due to launch in March. Since starting work on the Surge S1 chip two and a half years ago, Xiaomi developed the technology in partnership with state-backed Datang Telecom Technology, US telecom company Qualcomm's Chinese unit and the UK's ARM Holdings. The decision to develop chipsets in-house follows last year's undersupply of Xiaomi phones due to the slowness of procuring chipsets from manufacturers. The company shipped about 20% fewer phones in 2016, at 55 million, according to Chinese researcher Sigma Intell.

BEIJING -- Chinese smartphone maker Xiaomi has developed its first in-house chipset for the devices, taking greater control of cost and functionality in an effort to reignite the core handset business.

The company had previously obtained chipsets, the phone's core processing units, from external companies. The Surge S1 will come installed in Xiaomi's new smartphone, the Mi 5c, slated to launch in March.