Reuters: Xiaomi Unveils New Xring O3 Chip, TSMC to Produce with 3nm Process

Chinese smartphone maker Xiaomi unveiled its latest self-developed processor, the Xring O3, on August 24. This move aims to strengthen its supply chain and reduce reliance on external chip suppliers. Sources familiar with the matter revealed that Taiwan Semiconductor Manufacturing Co. (TSMC) will produce the Xring O3 chip utilizing its advanced 3-nanometer process technology.

The launch of the Xring O3 comes a year after Xiaomi released its first self-designed mobile processor, the Xring O1. This marks a significant step for Xiaomi, the world's third-largest smartphone vendor, as it vies with competitors like Apple, Samsung Electronics, and Huawei in the race for in-house chip development. System-on-chip (SoC) processors integrate computing, graphics, AI, and imaging functions into a single component.

While Xiaomi and TSMC have not officially commented on the production details, the development of proprietary chips allows Xiaomi greater control over product features and enhances its bargaining power with suppliers. The Xring O3 is anticipated to power Xiaomi's upcoming flagship foldable phone, with an initial shipment target of 200,000 to 300,000 units. This entry into the foldable market could intensify competition with Huawei, which currently dominates the segment in China.

Further reports suggest Xiaomi has also contracted TSMC for the production of two other chips: the Xring O100, a 6nm neural processing unit (NPU) for its MiMo large language model on consumer devices, and the Xring D100, a 3nm chip designed for autonomous driving. Notably, Xiaomi is not currently on the U.S. Department of Defense's list of Chinese military-affiliated companies, nor has it been placed on the U.S. Commerce Department's Entity List.