Xiaomi and OPPO are reportedly working on their own custom system-on-a-chip (SoC) for their smartphones, with rollout to begin as early as yearend 2021.

Per Taiwanese newspaper DigiTimes, the SoCs from these two Chinese companies will come with sub-6GHz 5G support. The report has also unveiled that Unisoc, which is headquartered in Shanghai, is also preparing its own 5G-ready chip.

Multiple factors have led Chinese companies to design and build their own chips. For one, there’s the US-China trade war, which is prohibiting global manufacturers from supplying chips to Chinese companies. Such is the case of Taiwan-based TSMC being restricted from producing Huawei’s Kirin chipsets.

For another, there’s the ongoing global chip supply crisis. China has also set its sight on reaching a 70-percent local chip production by 2025, which is one of the stated goals in the Made in China 2025 policy. And lastly, producing in-house chips can also lead to better hardware-software integration.

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