Xiaomi Launches Xring O3 Chip as TSMC Partnership Deepens China’s Chip Push
Synopsis
The smartphone maker’s new Xring O3 processor is produced on TSMC‘s 3nm process and is expected to power an upcoming foldable phone, with Xiaomi targeting up to 300,000 shipments as it reduces reliance on outside chip suppliers.
Chinese smartphone maker Xiaomi has unveiled its new Xring O3 smartphone processor, deepening its push to develop key components internally and reduce reliance on external chip suppliers.
The launch comes about a year after Xiaomi introduced the Xring O1, its first proprietary smartphone processor.
The company is now following the path taken by rivals including Apple, Samsung Electronics and Huawei which have invested heavily in developing their own chips.
TSMC will manufacture the Xring O3 using its 3-nanometre process.
One source said the processor is expected to power Xiaomi's upcoming flagship foldable phone with shipments targeted at 200,000 to 300,000 units.
Xiaomi Targets Premium Foldable Market
The move could strengthen Xiaomi's position in the premium smartphone segment where foldable devices are becoming an increasingly important battleground.
Huawei remains the dominant player in China's foldable market. It shipped 1.6 million foldable phones in the second quarter, securing a 68% market share, according to Smart Analytics Global. Honor followed with 13.7% while Oppo held 8.5%.
Xiaomi's semiconductor strategy is also about more than smartphones. The company restarted large-scale in-house chip development in 2021 and has committed at least 50 billion yuan ($7 billion) over a decade to the effort.
Xiaomi said cumulative shipments of devices powered by the Xring O1 had exceeded 1 million units including smartphones, tablets and watches.
Chip Ambitions Extend to AI and Autonomous Driving
Xiaomi is expanding the Xring family into other technologies.
The company has contracted TSMC to manufacture the Xring O100, a 6-nanometre neural processing unit designed to support its MiMo large language model on consumer devices. Another chip, the Xring D100 is being developed for autonomous driving and uses a 3-nanometre process.
Both are scheduled for deployment next year while Xiaomi says the O3 has already entered mass production. The investment comes as smartphone makers face rising memory and component costs.
Xiaomi sold 65 million smartphones in the first half of 2026 which is down from 84 million a year earlier.
For Xiaomi, greater control over chip design could help differentiate its devices while strengthening its negotiating position with suppliers such as Qualcomm and MediaTek.
Source: Reuters
Vishal is an experienced Editor at Inspirepreneur Magazine with key interests in artificial intelligence, eCommerce, entrepreneurship, lifestyle and startup sector. Prior to joining Inspirepreneur, he was a Content Writer cum Correspondent at Siliconindia Magazine, where he worked on Company Profiles, Cover Stories, Executive Profiles, Feature Articles and Thought Leadership content.
