There have been rumors and reports about Xiaomi building their own SoC dating all the way back to 2015. This was the result from a partnership between Xiaomi and a chip manufacturer named Leadcore.
Since then, we've seen Xiaomi devices shipped with Leadcore SoCs, but they took this partnership a little further and were said to start developing a custom chip specifically for Xiaomi. We saw a recent rumor about an Xiaomi SoC in October of last year, but nothing about that leaked device has been officially confirmed yet.
It was less than two weeks ago when a report from The Wall Street Journal brought this subject up again. They revealed the name of the SoC that Xiaomi is said to be using, Pinecone, and said we would hear something official about this chip "within a month." That report brought up Leadcore again, but they went even further into detail about the partnership., saying that Beijing Pinecone Electronics is linked to Xiaomi, and that they paid $15 million to acquire mobile processor technology from Leadcore Technology Ltd.
Now it seems that Beijing Pinecone Electronics and Leadcore Technology have both been working to develop this mobile SoC specifically for Xiaomi. Today, it's been made official that Xiaomi is indeed going to reveal some details about their own SoC later this month. The date for the reveal is set on February 28th, but the name might not end up being Pinecone at all. The word Pinecone has been translated directly from the Chinese term they're using, but it has not yet been confirmed by Xiaomi at this time.
This will make Xiaomi the 2nd Chinese smartphone manufacturer to build their own SoCs, and it couldn't come at a better time either. We're already seeing supply issues prevent early 2017 flagship smartphones from using Qualcomm's Snapdragon 835. So this will allow Xiaomi to bypass issues like this and create the product for themselves, should they develop a flagship chipset in the feature.
Source: Xiaomi
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