XIAOMI(HK:01810) Soochow Securities·2025-06-03 06:48Investment Rating - The report maintains an "Accumulate" rating for the electronic industry [1] Core Insights - The report compares the self-developed SoC chips of OPPO and Xiaomi, highlighting the competitive landscape and the challenges faced by both companies in their chip development efforts [11][12] - OPPO's Zheku team faced significant challenges, including high R&D costs and limited market demand, leading to the project's eventual shutdown [18][19] - Xiaomi's Xuanjie team has shown promising results with its 3nm SoC, indicating a more sustainable path forward due to strategic long-term investments and a growing market presence [25][36] Summary by Sections 1. Introduction: Comparison of Zheku and Xuanjie - The report emphasizes the intense competition among major smartphone brands in developing self-made SoC chips, with OPPO and Xiaomi as focal points [11] 2. OPPO Zheku: Ambitions and Challenges - Zheku was established in August 2019, rapidly expanding to 3,300 employees by May 2023, with a focus on high-end chip design [12][14] - The team faced a significant setback with the 4nm flagship chip, which failed to progress due to low market demand and declining sales [18][19] 3. Xiaomi Xuanjie: Steady Progress - Xiaomi's self-developed team was founded in 2014, with a commitment to invest 500 billion yuan over ten years, leading to the successful launch of the 3nm SoC Xuanjie O1 [23][25] - The Xuanjie O1 chip has outperformed expectations in performance benchmarks, indicating a strong competitive position [25][29] 4. Economic Analysis of R&D Investments - Zheku's R&D expenditures totaled approximately 10 billion yuan over three years, with high personnel costs contributing to financial strain [17][18] - Xiaomi's Xuanjie team has invested over 135 billion yuan in R&D, with a focus on achieving economies of scale to reduce chip costs [33][34]