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

Chinese smartphone maker Xiaomi has unveiled the Xring O3, an upgraded version of its proprietary smartphone processor, signaling a continued push to enhance its supply chain and lessen dependence on external chip manufacturers. This development marks a significant step in Xiaomi's strategy to emulate rivals such as Apple, Samsung Electronics, and Huawei by developing its own core components.

The new Xring O3 chip is being manufactured by Taiwan Semiconductor Manufacturing Company (TSMC) utilizing its advanced 3-nanometer production technology, according to sources familiar with the matter. Industry insiders suggest the chip is slated to power Xiaomi's upcoming flagship foldable phone, with initial shipment targets estimated between 200,000 and 300,000 units. Neither Xiaomi nor TSMC immediately commented on these details.

This initiative reflects a broader trend within the smartphone industry, where device makers are increasingly seeking to differentiate their products and gain greater control over their supply chains amidst fierce competition, particularly in the premium segment. System-on-chips (SoCs), which integrate computing, graphics, AI, and imaging functions, are crucial for performance and feature differentiation.

Xiaomi's investment in in-house chip development is gaining momentum. The company reported that devices powered by its first proprietary processor, the Xring O1, have achieved cumulative shipments exceeding 1 million units since its launch. Specifically, approximately 150,000 smartphones equipped with the Xring O1 chip have been sold since its release in May 2025, according to available data.