Chinese smartphone maker Xiaomi is reportedly set to begin using its own phone processors in the second half of 2016. The Xiaomi-designed chips will primarily be used in entry-level and mid-range RedMi Note phones, according to Reuters. As it enters the chip design area, Xiaomi has hired 200-300 people to work on the processors.

As the largest Chinese smartphone company, Xiaomi's move towards in-house chips could be an issue for MediaTek and Qualcomm. It will also put Xiaomi into the same group as Apple, Samsung, and Huawei, all of which have designed chips.

MediaTek is currently Xiaomi's main chip supplier.