Chinese tech company Xiaomi, best known for its low-end smartphones, has taken a six percent stake in compatriot chip designer VeriSilicon.

The smartphone maker is revamping its years-long pursuit of success in semiconductors, which it sees as central to driving innovation.

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

VeriSilicon’s biggest external shareholder is the China Integrated Circuit Industry Investment Fund, a centralised national fund for the domestic semiconductor industry.

VeriSilicon is headquartered in Shanghai and has research and development centres in the US.