China's Xiaomi continues chip strategy revamp with investment in semiconductor designer

China’s Xiaomi Corp (1810.HK) has taken a stake of roughly 6% in compatriot chip designer VeriSilicon Holdings Co Ltd, as the smartphone maker revamps its years-long pursuit of success in semiconductors which it sees as central to driving innovation, reports Trend citing to Reuters.

The investment comes as the government identifies chips as one of several sectors in which it wants the country to become more self-reliant under its "Made in China 2025” initiative.

In a filing to the China Securities Regulatory Commission (CSRC) published online on Thursday, VeriSilicon revealed a fund run by Xiaomi became its second-largest external shareholder in June.

Xiaomi Corp confirmed the investment to Reuters. None of the companies disclosed its monetary value.

VeriSilicon’s biggest external shareholder is the China Integrated Circuit Industry Investment Fund, a centralized, national-level fund for the domestic semiconductor industry, popularly known as "The Big Fund”.

The firm is headquartered in Shanghai and has research and development centers at home and in the United States. It typically works as a contractor to other chip companies, helping them complete additional parts of semiconductor design.