Xiaomi launches new Xring chip, deepening push into in-house processors

Summary

Xiaomi has unveiled its new in-house Xring O3 smartphone processor as it seeks greater control over key components and reduce reliance on external chip suppliers such as Qualcomm and MediaTek. TSMC will manufacture the chip using its 3-nanometre technology, with the processor expected to power an upcoming flagship foldable phone and an initial shipment target of 200,000 to 300,000 units.

BEIJING, August 24, 2026 — Chinese smartphone maker Xiaomi Corp. has unveiled its new Xring O3 smartphone processor, expanding its push to develop proprietary chips and gain greater control over critical components across its device ecosystem.

The new processor comes about a year after Xiaomi introduced its first proprietary smartphone chip, the Xring O1. The move places Xiaomi alongside major smartphone rivals including Apple, Samsung Electronics and Huawei Technologies, which have developed their own processors to differentiate their devices and reduce dependence on third-party chip suppliers.

Two people familiar with the matter said Taiwan Semiconductor Manufacturing Co. (TSMC) will manufacture the Xring O3 using its 3-nanometre process technology. One of the sources said Xiaomi is targeting shipments of between 200,000 and 300,000 units of the new processor for an upcoming flagship folding smartphone. Xiaomi and TSMC did not immediately respond to requests for comment on the manufacturing arrangement, production technology or shipment target.

Smartphone processors, or system-on-chips, combine computing, graphics, artificial intelligence processing and imaging functions into a single component. Xiaomi’s decision to develop its own silicon reflects a broader industry push by device manufacturers to strengthen supply-chain control and reduce reliance on companies such as Qualcomm and MediaTek amid increasingly intense competition in premium smartphones.

Building on the Xring O1

The Xring O3 represents the next stage of Xiaomi’s proprietary processor strategy following the launch of the Xring O1 in May 2025.

Xiaomi said during an earnings call last week that cumulative shipments of devices powered by the Xring O1 had surpassed 1 million units. The figure includes smartphones, tablets and watches using the processor.

According to people familiar with the company’s sales, Xiaomi has sold about 150,000 smartphones powered by the Xring O1 since its May 2025 launch. The broader 1 million-plus shipment figure indicates that Xiaomi has been expanding the use of its proprietary silicon beyond smartphones.

The O1’s rollout gives Xiaomi a foundation for expanding in-house chip development across its wider hardware ecosystem. The company is seeking tighter integration between its processors, software and connected-device portfolio while reducing exposure to external semiconductor suppliers.

Expanding the proprietary chip portfolio

Xiaomi’s semiconductor ambitions extend beyond smartphone processors.

The company has also announced development of two additional proprietary chips: the Xring O100, a neural-processing unit designed to support its MiMo artificial intelligence model, and the Xring D100, a processor designed for autonomous-driving applications.

Both chips are scheduled for commercial use in 2027, extending Xiaomi’s in-house silicon strategy into artificial intelligence and automotive applications.

The expansion reflects Xiaomi’s broader effort to build its own technology stack across smartphones, AI-enabled devices and electric vehicles. Developing dedicated silicon can give device manufacturers greater control over performance and power management while allowing hardware and software to be designed more closely together.

Reducing reliance on external chip suppliers

Xiaomi’s chip strategy comes as smartphone manufacturers face growing pressure to differentiate premium devices while managing component costs and supply-chain risks.

Qualcomm and MediaTek remain major suppliers of smartphone processors, but developing proprietary silicon gives Xiaomi another option for high-end products. The approach also mirrors strategies used by Apple, Samsung and Huawei, which have invested heavily in custom processors.

For Xiaomi, the Xring program is therefore about more than a single smartphone chip. The company is gradually building an internal semiconductor platform that can support multiple categories of products and potentially give it greater control over the technology underpinning its ecosystem.

The Xring O3 also demonstrates Xiaomi’s willingness to use advanced manufacturing technology for its proprietary processors. Having TSMC produce the chip on a 3nm process gives Xiaomi access to one of the industry’s leading semiconductor manufacturing technologies, although the company has not publicly disclosed detailed performance specifications for the O3.

Why this matters

• Greater silicon control: Xiaomi’s Xring program reduces its long-term dependence on external processor suppliers such as Qualcomm and MediaTek. 
• Advanced 3nm manufacturing: TSMC’s 3nm process places the Xring O3 on an advanced semiconductor manufacturing platform.
• Growing proprietary ecosystem: Xiaomi is extending its chip ambitions from smartphones into AI processing and autonomous-driving applications through the O100 and D100. 
• Proven O1 foundation: More than 1 million devices powered by the Xring O1 have shipped, showing that Xiaomi has already begun scaling its proprietary silicon beyond an experimental project.

FAQs

Q1: What is the Xiaomi Xring O3 processor?

The Xring O3 is Xiaomi’s latest in-house smartphone processor and the successor to the Xring O1 launched in 2025. It is designed to give Xiaomi greater control over key smartphone components and reduce reliance on external chip suppliers.

Q2: Who will manufacture the Xring O3?

TSMC is expected to manufacture the Xring O3 using its 3-nanometre process technology, according to two people familiar with the matter.

Q3: How many Xring O3 processors is Xiaomi targeting initially?

One source said Xiaomi is targeting shipments of 200,000 to 300,000 units for an upcoming flagship folding smartphone.

Q4: How has the Xring O1 performed?

Xiaomi said cumulative shipments of devices powered by the Xring O1, including smartphones, tablets and watches, have surpassed 1 million units. Sources said about 150,000 smartphones using the chip have been sold since its May 2025 launch.

Q5: What other chips is Xiaomi developing?

Xiaomi is also developing the Xring O100 for AI processing and the Xring D100 for autonomous-driving applications, with commercial use planned for 2027.