TLDR
- Xiaomi launched the Xring O3, its second in-house smartphone processor, built on TSMC’s 3nm technology
- The chip is expected to power Xiaomi’s upcoming flagship foldable phone, with 200,000 to 300,000 units targeted
- TSMC is also making two other Xiaomi chips: the Xring O100 for AI and the Xring D100 for autonomous driving
- Global smartphone shipments are forecast to fall 14% in 2026, squeezing demand across the industry
- Xiaomi sold 65 million phones in the first half of 2026, down from 84 million in the same period of 2025
Xiaomi unveiled its new Xring O3 smartphone chip on Monday, with Taiwan Semiconductor Manufacturing Company set to produce it using 3-nanometre technology. The move marks the Chinese phone maker’s second in-house processor after the Xring O1 launched in May 2025.
$XIACF $TSM Xiaomi has unveiled its new Xring O3 smartphone chip, reportedly built by TSMC on its advanced 3nm process📱
The chip is expected to power Xiaomi’s next flagship foldable, with 200K–300K units targeted — reducing its reliance on Qualcomm and MediaTek. pic.twitter.com/UIe3BUYDc2
— The Future Investors (@ftr_investors) August 24, 2026
The O3 is expected to power Xiaomi’s next flagship foldable phone. Sources familiar with the plans say Xiaomi is targeting shipments of between 200,000 and 300,000 units for that device.
Foldable phones sit at the higher end of the market. Entering that space puts Xiaomi in direct competition with Huawei, which held a 68% share of China’s foldable phone market in the second quarter, shipping 1.6 million units.
Xiaomi and TSMC did not respond to requests for comment on the chip’s manufacturer, production technology, or shipment targets. The sources declined to be named as the plans are not public.
Xiaomi Expands Its Chip Lineup
Monday’s announcement went beyond just the O3. Xiaomi said it has also contracted TSMC to produce the Xring O100, a 6-nanometre neural processing unit designed to run its MiMo large language model on consumer devices.
A third chip, the Xring D100, is a 3-nanometre processor built for autonomous driving. Xiaomi said the O3 has entered mass production, while the O100 and D100 have finished development and are set to launch next year.
The Xring O1, Xiaomi’s first chip, powered smartphones, tablets, and watches. Cumulative shipments of O1-powered devices passed one million units since launch, the company said during an earnings call last week. Around 150,000 smartphones using the chip have been sold since May 2025.
Falling Sales and Rising Costs
Xiaomi’s chip push comes as the smartphone market faces pressure. The company sold 65 million handsets in the first half of 2026 at an average price of 1,329 yuan, down from 84 million units at 1,141 yuan in the same period of 2025.
Global smartphone shipments are forecast to drop 14% in 2026, according to International Data Corporation. Higher memory and component costs have pushed up device prices and weighed on consumer demand.
By developing its own chips, Xiaomi is following a path taken by Apple, Samsung, and Huawei. Device makers that control more of their supply chain can cut costs and better differentiate their products from rivals using the same off-the-shelf chips from Qualcomm and MediaTek.
The Xring O3’s launch is the clearest sign yet that Xiaomi is committed to building its own chip roadmap across smartphones, AI, and automotive over the coming years.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
