On April 2nd, Xiaomi released the organization structure adjustment email disclosure. In order to cooperate with the company’s AioT strategy to accelerate the development of the chip research and development business, Xiaomi’s wholly-owned subsidiary Songguo Electronics team reorganized and some teams were split. Established a new company, Nanjing Big Fish Technology.
The email pointed out that after the adjustment, Xiaomi holds a 25% stake in Nanjing Big Fish Semiconductor and the team collectively holds 75%. Nanjing Dayu Semiconductor will focus on the research and development of AI and IoT chips and solutions in the semiconductor field, while Songguo will continue to focus on mobile phone SoC chips and AI chip development.
According to the data, Songguo Electronics was established in 2014 and is a wholly-owned subsidiary of Xiaomi, mainly engaged in the research and development of semiconductor chips. On February 28, 2017, Xiaomi released the S1 chip, becoming the fourth mobile phone brand in the world with the R&D capability of mobile phone SoC chips.
Xiaomi has indicated in the email that the restructuring is to tie in with the AIOT strategy. At the beginning of this year, Lei Jun announced that Xiaomi officially launched the “mobile +AIoT” twin engine, which is the core strategy of Xiaomi in the next five years. Lei Jun said that within five years from now, Xiaomi will continue to invest more than 10 billion yuan in the AIOT field, ALL in AIoT.
In order to promote the technological innovation of Xiaomi Group and the development of AIOT strategy, Xiaomi set up the Group Technical Committee, Artificial Intelligence Department, Big Data Department and Cloud Platform Department on February 26 this year. Subsequently, on March 7th, the AIOT Strategy Committee was established, consisting of the general manager and deputy general manager of more than a dozen core business departments, including IoT Platform Department, Artificial Intelligence Department, Ecological Chain Department, Intelligent Hardware Department, Mobile Phone Department and TV Department. To strengthen the overall implementation of the Group’s AioT strategy and continue to expand its leading position in the AIOT innovation field.
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Xiaomi has strong demand for AI and IoT chips, and splitting and restructuring is imperative. From a strategic point of view, some of the pine nuts team split into the big fish technology, the advantages are three :
1. Support the Nanjing Big Fish team to independently finance, so that it can accept more funds, technology and cooperation, win faster and better development, and accelerate the development of Xiaomi AI and IoT chips.
2. The big fish will focus on the development of the AioT chip. In conjunction with the Xiaomi Group’s AioT strategy, it will also actively embrace the upcoming AioT market. According to insiders, at present, there are many investment institutions in the big fish that are closely following.
3. Giving the big fish team a controlling stake will greatly stimulate the entrepreneurial enthusiasm of the entrepreneurial team, promote the core business development more efficiently and quickly, and help the big fish to introduce more strategic investors and business partners. Previously, Xiaomi had tried a similar shareholding structure when investing in the ecological chain, and achieved great success. It has incubated a number of unicorn companies with a valuation of more than 1 billion US dollars in a short period of time, and many companies have successfully listed. .