Xiaomi Unveils New Xring O3 Chip, Taps TSMC for 3nm Production

Xiaomi is expanding its in-house chip strategy with the Xring O3, aiming to reduce dependence on Qualcomm and MediaTek while gaining greater control over smartphone technology.

Chinese smartphone maker Xiaomi has unveiled its latest in-house smartphone processor, the Xring O3, marking another major step in the company’s push to develop its own semiconductor technology.

According to sources cited by Reuters, Taiwan Semiconductor Manufacturing Co. (TSMC) will manufacture the new processor using its advanced 3-nanometre technology. Xiaomi’s move is aimed at strengthening its supply chain and reducing dependence on external chip suppliers.

Xring O3 to Power Upcoming Flagship

The Xring O3 is expected to be used in Xiaomi’s upcoming flagship foldable smartphone, with shipment targets estimated at around 200,000 to 300,000 units, according to sources familiar with the plans.

The new chip combines computing, graphics, AI processing and imaging capabilities in a single system-on-chip (SoC).

Xiaomi Pushes for Chip Independence

The launch comes about a year after Xiaomi introduced its first proprietary smartphone processor, the Xring O1.

By designing more chips internally, Xiaomi aims to gain greater control over product features, improve supply-chain resilience and strengthen its negotiating position with suppliers such as Qualcomm and MediaTek.

More Xring Chips in Development

Xiaomi is also developing two additional chips with TSMC, according to sources.

The Xring O100 is a 6nm neural processing unit designed to support Xiaomi’s MiMo AI model on consumer devices, while the Xring D100 is a 3nm chip aimed at autonomous-driving applications.

Xiaomi has reportedly invested more than 20 billion yuan ($3 billion) in its Xring chip programme so far, while its semiconductor design team has grown to more than 3,000 employees.

Growing Competition in Premium Smartphones

The move comes as smartphone makers increasingly develop their own processors to differentiate their products and reduce reliance on chip suppliers.

Apple, Samsung and Huawei have already built strong in-house semiconductor capabilities. Xiaomi’s latest move could help the Chinese company compete more aggressively in the premium smartphone segment.