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Xiaomi unveiled a new version of its in-house Xring handset processor on Monday, betting that deeper control over key components will strengthen its supply chain and reduce reliance on external chip suppliers.
The introduction of Xring O3 comes a year after Xiaomi launched its first proprietary smartphone processor, the Xring O1, marking the latest step in the world's third-largest smartphone vendor's push to join rivals such as Apple, Samsung and Huawei in developing its own chips, Reuters reported.
TSMC will manufacture the new chip using its 3-nanometer production technology, according to two people familiar with the matter cited in the report. One of the sources said the chip is expected to power Xiaomi's upcoming flagship folding phone, with a shipment target of 200,000 to 300,000 units.
Xiaomi's expansion into foldable phones, a more expensive segment of the market, could challenge leading domestic player Huawei, Reuters reported. Huawei shipped 1.6 million foldable phones in China in the second quarter, giving it a 68% market share, followed by Honor with 13.7% and Oppo with 8.5%, according to research firm Smart Analytics Global.
Xiaomi's chip push reflects a broader industry trend as device makers seek to differentiate products and lessen dependence on suppliers such as Qualcomm and MediaTek amid intensifying competition in premium smartphones, according to the report. Xiaomi said during an earnings call last week that cumulative shipments of devices powered by the Xring O1, including smartphones, tablets and watches, had surpassed 1 million units since launch. The company has sold about 150,000 smartphones based on the Xring O1 chip since its May 2025 launch, according to the sources.
Smartphone makers are contending with a global downturn in device sales, Reuters reported, as memory and component costs push up prices and squeeze demand. Xiaomi sold 65 million handsets in the first half of 2026 at an average price of 1,329 yuan, or about $197.74, compared with 84 million units at an average price of 1,141 yuan in the same period of 2025 and 83 million units at 1,123 yuan in 2024, according to data from Visible Alpha by S&P Global. Global smartphone shipments are expected to decline 14% in 2026, according to research firm International Data Corporation.
Xiaomi also said Monday it had contracted TSMC to manufacture two additional Xring chips: the Xring O100, a 6-nanometer neural processing unit that will support Xiaomi's large language model, MiMo, on consumer electronic devices, and the Xring D100, a 3-nanometer chip for autonomous driving, according to the report.
The introduction of Xring O3 comes a year after Xiaomi launched its first proprietary smartphone processor, the Xring O1, marking the latest step in the world's third-largest smartphone vendor's push to join rivals such as Apple, Samsung and Huawei in developing its own chips, Reuters reported.
TSMC will manufacture the new chip using its 3-nanometer production technology, according to two people familiar with the matter cited in the report. One of the sources said the chip is expected to power Xiaomi's upcoming flagship folding phone, with a shipment target of 200,000 to 300,000 units.
Xiaomi's expansion into foldable phones, a more expensive segment of the market, could challenge leading domestic player Huawei, Reuters reported. Huawei shipped 1.6 million foldable phones in China in the second quarter, giving it a 68% market share, followed by Honor with 13.7% and Oppo with 8.5%, according to research firm Smart Analytics Global.
Xiaomi's chip push reflects a broader industry trend as device makers seek to differentiate products and lessen dependence on suppliers such as Qualcomm and MediaTek amid intensifying competition in premium smartphones, according to the report. Xiaomi said during an earnings call last week that cumulative shipments of devices powered by the Xring O1, including smartphones, tablets and watches, had surpassed 1 million units since launch. The company has sold about 150,000 smartphones based on the Xring O1 chip since its May 2025 launch, according to the sources.
Smartphone makers are contending with a global downturn in device sales, Reuters reported, as memory and component costs push up prices and squeeze demand. Xiaomi sold 65 million handsets in the first half of 2026 at an average price of 1,329 yuan, or about $197.74, compared with 84 million units at an average price of 1,141 yuan in the same period of 2025 and 83 million units at 1,123 yuan in 2024, according to data from Visible Alpha by S&P Global. Global smartphone shipments are expected to decline 14% in 2026, according to research firm International Data Corporation.
Xiaomi also said Monday it had contracted TSMC to manufacture two additional Xring chips: the Xring O100, a 6-nanometer neural processing unit that will support Xiaomi's large language model, MiMo, on consumer electronic devices, and the Xring D100, a 3-nanometer chip for autonomous driving, according to the report.
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