Xiaomi Unveils Xring O3, Production Set for TSMC's 3nm Process

Xiaomi has unveiled its mobile processor, the Xring O3, marking a significant step towards in-house chip production for premium smartphones. Production will be handled by Taiwan's TSMC using its 3nm process. The Xring O3 was developed as part of Xiaomi's strategy to reduce reliance on external mobile chip suppliers and is a key semiconductor that integrates a central processing unit, graphics, artificial intelligence computations, and image processing capabilities into a system-on-chip (SoC) for smartphones. The Xring O3 is likely to be featured in Xiaomi's upcoming flagship foldable phone, with an initial shipment target of 200,000 to 300,000 units. This figure is based on statements from anonymous sources and is not an official announcement. Xiaomi first unveiled the Xring O1 as its flagship processor in May 2025, and the cumulative shipments of the Xring O1 have surpassed one million units. Sales of smartphones based on the Xring O1 are approximately 150,000 units. The initial target for the Xring O3 is larger than the sales of O1 smartphones, but it is considered a limited start compared to the overall shipment scale. Xiaomi reported that its research and development expenses for the second quarter of 2026 reached 9.2 billion yuan, an 18.9% increase from the previous year. The industry holds a positive view that Xiaomi can reduce its dependence on Qualcomm and MediaTek with its own chips, while also expressing caution that the 3nm process may be at a disadvantage compared to competitors' 2nm plans.

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