Xiaomi launches new Xring chip, partners with TSMC for production, sources say

Chinese smartphone manufacturer Xiaomi introduced a new iteration of its proprietary Xring smartphone processor on Monday, aiming to strengthen its supply chain and decrease reliance on external chip suppliers. The Xring O3 is the latest in a series of moves by the world's third-largest smartphone maker to develop its own chips, following its first in-house processor, the Xring O1, launched a year ago.

TSMC, a leading chip manufacturer, will produce the new chip using its advanced 3-nanometre production technology, according to two sources familiar with the matter. The chip is anticipated to power Xiaomi's upcoming flagship folding phone, with shipment forecasts of 200,000 to 300,000 units. While Xiaomi and TSMC declined to comment on the chip's specifics or shipment targets due to the sensitive nature of the information, the companies did not respond to requests for comment.

The development of smartphone processors, or system-on-chips (SoC), is part of a broader industry trend as manufacturers strive to differentiate their products and reduce dependency on suppliers like Qualcomm and MediaTek. Xiaomi reported that over 1 million devices powered by the Xring O1, encompassing smartphones, tablets, and smartwatches, have been shipped since its launch in May 2025.

The company has sold around 150,000 smartphones featuring the Xring O1 chip since its release in May 2025, based on sources.