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China's Xiaomi develops first in-house smartphone processor

Proprietary chip seen helping with smoother product rollouts

BEIJING -- Chinese smartphone maker Xiaomi has developed its first in-house chipset for the devices, taking greater control of cost and functionality in an effort to reignite the core handset business.

The company had previously obtained chipsets, the phone's core processing units, from external companies. The Surge S1 will come installed in Xiaomi's new smartphone, the Mi 5c, slated to launch in March.

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