Xiaomi is developing its own microprocessor in collaboration with Arm.

Qualcomm and MediaTek are the two leading firms in the smartphone processor industry. Xiaomi is going into this market. The massive Chinese IT company has begun collaborating with Arm to produce smartphone CPUs.

The CEO of MediaTek stated that Xiaomi is developing the CPU in collaboration with Arm, a semiconductor vendor, in a report that was published in Counterpoint Research. The news of Xiaomi and Arm's collaboration was initially made public via the digital chat station on the Chinese social media platform Weibo.

On a related chip development endeavor, Arm collaborated with Oppo, another Chinese technology company. But later on, a number of issues led to the project's termination. According to tech analysts, Arm is now producing semiconductors in collaboration with Xiaomi after the agreement with Oppo fell through.

Chip manufacturing for smartphones is a difficult process. Therefore, the technical specialists advise Xiaomi, the chip design and manufacturing partner, to carefully handle every step of the process.

Within the smartphone sector, Google and Samsung are collaborating on the development of Google's Tensor processor, while Apple and TSMC are working on bionic processors. A senior analyst from Counterpoint Research described the challenges involved in developing chips. He said, "Many cellphone manufacturers are now relying on specialized companies like MediaTek for chip development."