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This article provides a clear overview of Xiaomi Silently Announced Its Own Development of a Chip, with the main facts, useful context, and practical details organized for easy reading.
Subsequently, there were rumors of Xiaomi cooperating with manufacturer TSMC, but there was no official announcement. In 2019, it was reported that part of Pinecone - Xiaomi's internal chip development division - had shifted its focus to developing AI hardware for IoT devices.

According to the source, Xiaomi is trying to keep the smartphone division profitable, so it has cut costs for R&D and internal chip development department Pinecone. The shift to developing AI components for IoT devices will be more helpful, helping Xiaomi expand its ecosystem.
So far, the Surge S1 is the only processor chip developed by Xiaomi itself. This is a fairly basic 28nm chip, using the ARM architecture. The Surge S1 has 8 cores of Cortex-A53 and Mali-T860 GPU. Xiaomi Mi 5c is the first and only smartphone with this processor.
Today, Xiaomi continues to use Qualcomm and MediaTek processors. There are only three smartphone manufacturers in the world producing their own chips, Apple, Samsung and Huawei.
Reference: Gizchina
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