The Chinese tech giant deepens semiconductor independence, tapping TSMC’s 3nm process for its upcoming flagship foldable.
Chinese smartphone manufacturer Xiaomi has unveiled a new iteration of its in-house Xring smartphone processor. The move signals a strategic bid to gain tighter control over key components, fortify its supply chain, and lessen its dependence on external chipmakers, according to a report by Reuters on Monday.
The launch of the Xring O3 comes just a year after Xiaomi debuted its first proprietary smartphone processor, the Xring O1. This latest development marks a significant step forward as the world’s third-largest smartphone vendor seeks to join global rivals—including Apple, Samsung Electronics, and Huawei—in manufacturing custom silicon.
Contract manufacturing giant TSMC is set to fabricate the new chip using its advanced 3-nanometre process node, two sources familiar with the matter told Reuters.
Industry insiders indicate that the Xring O3 is earmarked to power Xiaomi’s upcoming flagship foldable device, with an initial target shipment volume of between 200,000 and 300,000 units. System-on-chip processors of this nature integrate computing, graphics, artificial intelligence processing, and imaging capabilities into a single piece of silicon.
Xiaomi’s push into custom chip design reflects a wider trend across the mobile industry. Handset makers are increasingly striving to differentiate their premium offerings whilst insulating themselves from external component suppliers such as Qualcomm and MediaTek amidst fierce market competition.
Speaking during an earnings call last week, Xiaomi revealed that total cumulative shipments of devices powered by the original Xring O1—spanning smartphones, tablets, and smartwatches—had surpassed 1 million units. Sources cited in the report added that Xiaomi has sold approximately 150,000 smartphones containing the Xring O1 chip since its market launch in May 2025.
