Chinese tech giant Xiaomi is set to launch its highly anticipated YU7 electric SUV this Thursday, alongside a suite of other new products, including a self-developed mobile chip, the company announced.

The YU7 has been widely touted by analysts as a potential rival to Tesla’s Model Y in China — the world’s largest electric vehicle (EV) market. Xiaomi drew criticism last month after failing to showcase the SUV at the Shanghai Auto Show, disappointing fans and industry watchers alike.

In a post on Chinese social media platform Weibo, Xiaomi founder and CEO Lei Jun confirmed the YU7 would be revealed during the event. He also announced the launch of the company’s new Xring O1 mobile chip and the Xiaomi 15S Pro smartphone.

Xiaomi entered the EV space last year with the release of its SU7 electric sedan, expanding from its core business of smartphones, home appliances, and smart gadgets. Since December, the SU7 has regularly outsold Tesla’s Model 3 in China, although demand has reportedly dipped following a fatal crash involving the vehicle in March.

Beyond EVs, Xiaomi is intensifying its efforts in semiconductors to compete in an increasingly crowded smartphone market, where brands like Huawei and Apple are gaining ground with in-house chip technology that enhances device performance and ecosystem integration.

Lei revealed in a separate post that Xiaomi had invested 13.5 billion yuan (\$1.87 billion) in developing the Xring O1 chip and plans to invest at least 50 billion yuan more over the next decade to strengthen its chip design capabilities. A company spokesperson confirmed the investment timeline will begin in 2025.

Xiaomi began designing chips in 2014 and launched its first mobile processor, the Pengpai S1, in 2017. However, the company later pivoted to simpler chip designs for functions like battery management and image processing due to early challenges.

“The dream of building our own chips has never left us,” Lei wrote. “To become a great hard-tech company, conquering chip development is a summit we must reach — and we will go all out.”