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Xiaomi has unveiled its Xring O3 smartphone processor, manufactured by TSMC using 3-nanometre technology, as it expands in-house chip development.
Chinese smartphone maker Xiaomi has unveiled its latest in-house smartphone processor, the Xring O3, as the company seeks greater control over key components and reduced reliance on external chip suppliers.
The new processor comes a year after Xiaomi introduced the Xring O1, marking another step in its efforts to develop proprietary semiconductor technology. The company is competing with smartphone manufacturers including Apple, Samsung and Huawei, which have also developed their own chips.
Two people familiar with the matter said Taiwan Semiconductor Manufacturing Company (TSMC) will manufacture the Xring O3 using its 3-nanometre production process. Xiaomi and TSMC did not immediately comment on the manufacturing arrangements or production targets.
One source said the Xring O3 is expected to power Xiaomi’s upcoming flagship foldable smartphone, with shipments targeted at between 200,000 and 300,000 units. Xiaomi’s expansion into the premium foldable segment could increase competition with Huawei, which held a 68% share of China’s foldable smartphone market in the second quarter, according to Smart Analytics Global.
Xiaomi restarted development of large in-house chips in 2021 and has committed to investing at least 50 billion yuan ($7 billion) over a decade in the effort. The company said cumulative shipments of devices powered by the Xring O1, including smartphones, tablets and watches, had exceeded one million units since its launch.
The company has also expanded its semiconductor design team, which now exceeds 3,000 employees, while more than 20 billion yuan ($3 billion) has been invested in Xring chip development so far, according to a source.
Beyond smartphone processors, Xiaomi is developing additional chips for artificial intelligence and autonomous driving. The Xring O100, a 6-nanometre neural processing unit, is designed to support Xiaomi’s MiMo large language model on consumer devices. The company is also developing the Xring D100, a 3-nanometre chip intended for autonomous driving applications.
According to Xiaomi, the Xring O3 has already entered mass production, while development of the O100 and D100 has been completed and deployment is scheduled for next year.
The chip expansion comes as smartphone manufacturers face rising memory and component costs. Xiaomi sold 65 million smartphones during the first half of 2026, compared with 84 million in the same period of 2025, while its average selling price increased to 1,329 yuan from 1,141 yuan.
Xiaomi’s broader technology strategy also includes electric vehicles, with its EV business generating 23.9 billion yuan in revenue and delivering 104,199 vehicles during the second quarter.
