The handset maker joins Huawei in setting up a subsidiary in Tampere, where Nokia is also located.
OnePlus 7 tends to get more attention on Wikipedia, and higher reviews from tech websites readers, a study s comparing Huawei P30, Xiaomi Mi 9and Oneplus 7 shows.
Xiaomi will hold 25% of the new chipmaking subsidiary, with the balance to be held by company employees.
Xiaomi accounts for a quarter of the wearable devices market, but Huawei has seen the most growth in shipments.
The Xiaomi M9 will feature Qualcomm’s latest processor Snapdragon 855 and comes with three cameras in the back.
Chinese companies, including Huawei, Oppo, and Xiaomi, are challenging the dominance of established phone manufacturing giants in overseas markets.
Xiaomi’s share price slumped around 20% in the days preceding the expiry of the company’s six-month lockup period.
The company has seen success in the overseas market, where it generated more than 40% of its revenue in the third quarter of 2018.
Chinese phone manufacturers are increasing efforts to grab customers around the globe amid a slowing market.
Competition is picking up as the smartphone market slows and companies launch new sub-brands.