Xiaomi unveiled a new version of its proprietary smartphone processor, the Xring O3, on Monday. Two sources familiar with the matter reported that the company has partnered with Taiwan Semiconductor Manufacturing Co. (TSMC) to produce the chip using 3-nanometre technology.
The launch of the Xring O3 follows the 2025 introduction of the Xring O1, as the Beijing-based firm seeks to reduce its reliance on third-party chip suppliers like Qualcomm and MediaTek. Xiaomi joins other major smartphone manufacturers, including Apple, Samsung, and Huawei, that have developed in-house system-on-chips to integrate computing, graphics, and artificial intelligence functions.
Sources stated that the Xring O3 is expected to power Xiaomi's upcoming flagship folding smartphone, with a shipment target between 200,000 and 300,000 units. Additionally, the company announced the development of the Xring O100, a 6-nanometre neural processing unit for its MiMo large language model, and the Xring D100, a 3-nanometre chip for autonomous driving. While the O3 is in mass production, the other two chips are scheduled for deployment next year.
The move specifically targets the high-end folding phone market, where Huawei currently holds a 68% market share in China as of the second quarter. By producing 200,000 to 300,000 units of the O3 chip, Xiaomi is positioning itself to compete directly in the premium segment during a period when global smartphone shipments are projected by International Data Corporation to decline by 14% in 2026. Users of Xiaomi devices will see these proprietary chips integrated not only in phones but also in tablets and watches, which have already seen 1 million cumulative shipments for the previous O1 model.
The partnership with TSMC for 3-nanometre production sets a precedent for how Chinese tech firms navigate manufacturing needs for advanced circuitry. While the Xring O3 is currently entering the market, the impact on Xiaomi’s broader ecosystem will expand in 2027 when the Xring O100 and D100 are slated for release. These future chips will dictate the performance of the company's artificial intelligence features and its entry into the autonomous driving sector. Neither Xiaomi nor TSMC officially commented on the specific production volumes or the manufacturing technology used for the O3.