Chinese smartphone maker Xiaomi has unveiled the advanced Xring O3 alongside the Xring O100 and D100 processors, backed by a monumental ten-year investment commitment. Manufactured on Taiwan Semiconductor Manufacturing Co.’s 3-nanometre process, the new silicon lineup signals a major push into foldables, artificial intelligence, and autonomous driving.
Xiaomi Unveils the Xring O3 and Expands Custom Silicon Ambitions
Chinese smartphone vendor Xiaomi has unveiled a new version of its in-house handset processor, betting that greater control over key components will strengthen its supply chain and reduce reliance on external chip suppliers. The Xring O3 comes a year after Xiaomi launched its first proprietary smartphone processor, the Xring O1, marking the latest step in the world’s third-largest smartphone vendor’s push to join rivals Apple, Samsung Electronics and Huawei in developing its own chips, according to Reuters. Smartphone processors, also known as systems-on-chip, combine computing, graphics, artificial intelligence processing and imaging functions into a single component.
Taiwan Semiconductor Manufacturing Co. will manufacture the new chip using its 3-nanometre production technology, two people familiar with the matter said. Developing more chips in-house could give Xiaomi greater control over product features and improve its bargaining power with suppliers. The sources declined to be identified because the plans are not public. Xiaomi and TSMC did not immediately respond to requests for comment on the chip’s manufacturer, production technology or shipment targets.
The Architecture and Performance of the Xring O3
The technical specifications behind Xiaomi’s custom silicon program reveal a chip architecture that diverges significantly from what Qualcomm and MediaTek offer.
At the technology briefing in Beijing, Xiaomi detailed that the second-generation premium system on chip is built on a 3nm process.
Powering Foldable Flagships and Chasing Market Share
One source said the chip is expected to power Xiaomi’s upcoming flagship folding phone, with shipments targeted at 200,000 to 300,000 units. Its expansion into foldable phones, a higher-priced market segment, could intensify competition with Huawei. Huawei shipped 1.6 million foldable phones in China in the second quarter, giving it a 68% market share, followed by Honor with 13.7% and Oppo with 8.5%, according to research firm Smart Analytics Global.
Xiaomi’s chip push reflects a broader industry trend as device makers seek to differentiate their products and reduce dependence on suppliers such as Qualcomm and MediaTek amid intensifying competition in premium smartphones. The Beijing-based company restarted development of large, in-house chips in 2021 and has said it plans to invest at least 50 billion yuan ($7.0 billion) over a decade in the effort.
Xiaomi said on an earnings call that cumulative shipments of devices powered by the Xring O1, including smartphones, tablets and watches, had surpassed 1 million units since its launch. The sources said Xiaomi has sold about 150,000 smartphones based on the Xring O1 since its May 2025 launch.
Broadening the Silicon Ecosystem into AI and Autonomous Driving
Xiaomi is not stopping with the O3 processor.
The Xring brand has evolved from a single mobile system on chip into a full-ecosystem AI computing foundation, spanning human, car, and home
scenarios, according to Tekedia. Xiaomi has invested more than 20 billion yuan ($3 billion) in Xring chip development so far, while its semiconductor design unit has grown to more than 3,000 people from 2,500 last year.
Navigating Market Pressures and High Component Costs
Smartphone makers are grappling with a global downturn in device sales as rising memory and component costs drive up prices and weigh on demand. Global smartphone shipments are expected to decline 14% in 2026, according to research firm International Data Corporation.
