Xiaomi launches new Xring chip, partners with TSMC for production

Xiaomi, the world's third-largest smartphone vendor, has unveiled its latest in-house Xring chip, the Xring O3, marking a strategic move to reduce dependence on external chip suppliers and strengthen its supply chain. The new chip, manufactured using TSMC's 3-nanometre production technology, will power Xiaomi's upcoming flagship folding phone, with targeted shipments of 200,000 to 300,000 units.

Xiaomi restarted in-house chip development in 2021 and plans to invest at least 50 billion yuan over a decade. The company has sold over 1 million devices powered by its Xring O1 processor since its launch in 2025. In addition to the O3, Xiaomi contracted TSMC to manufacture the Xring O100, a 6-nm neural processing unit, and the Xring D100, a 3-nm chip for autonomous driving.

This move is part of a broader industry trend, as device makers seek to differentiate their products and control key components amid intensifying competition in premium smartphones. Xiaomi's electric-vehicle business generated 23.9 billion yuan in revenue with 104,199 vehicles delivered in the second quarter.