Xiaomi has unveiled its new Xring O3 smartphone processor, expanding its push to develop key chips in-house and reduce dependence on external suppliers such as Qualcomm and MediaTek. The launch marks another major step in Xiaomi’s semiconductor strategy after the Xring O1 debuted in 2025.
According to people familiar with the plans, TSMC will manufacture the Xring O3 using its 3-nanometre process technology. One source said Xiaomi is targeting shipments of between 200,000 and 300,000 units, with the chip expected to power an upcoming flagship foldable smartphone. Xiaomi and TSMC had not immediately confirmed these manufacturing and shipment details.
The move could strengthen Xiaomi’s position in the premium smartphone market, particularly in China’s growing foldable segment. Huawei remains a major competitor, with Smart Analytics Global data cited by Reuters showing Huawei held a 68% share of China’s foldable smartphone market in the second quarter, after shipping around 1.6 million units.
Xiaomi expands custom chip strategy
Xiaomi said during its recent earnings call that devices powered by the Xring O1 had surpassed one million cumulative shipments, including smartphones, tablets and watches. The company has also committed significant resources to its semiconductor business.
Beyond the O3, Xiaomi is developing the Xring O100, a 6nm neural processing unit designed to support its MiMo large language model, and the Xring D100, a 3nm chip aimed at autonomous-driving applications. Xiaomi says the O3 has already entered mass production, while the O100 and D100 are planned for deployment next year.
Xiaomi’s latest move reflects a wider industry trend. Apple, Samsung and Huawei also develop proprietary processors to gain greater control over hardware, software and supply chains.
For Xiaomi, the Xring O3 is therefore more than a new smartphone chip. It represents a broader effort to build a stronger in-house semiconductor ecosystem while competing in premium phones, AI and electric vehicles.
