Chinese smartphone giant Xiaomi unveiled its new Xring O3 processor on Monday, advancing its strategy to develop proprietary chips and reduce dependence on external semiconductor suppliers such as Qualcomm and MediaTek.
The Xring O3 arrives about a year after Xiaomi introduced its first in-house smartphone processor, the Xring O1. The latest launch strengthens Xiaomi’s position alongside major technology companies including Apple, Samsung Electronics and Huawei, which have invested heavily in developing custom chips for their devices.
Taiwan Semiconductor Manufacturing Co. (TSMC) will produce the Xring O3 using its advanced 3-nanometre manufacturing process, according to two people familiar with the plans. Xiaomi and TSMC have not publicly confirmed details about the manufacturing arrangement.
One source said Xiaomi intends to use the Xring O3 in an upcoming flagship foldable smartphone. The company is reportedly targeting shipments of between 200,000 and 300,000 units for the device. The sources requested anonymity because the production plans have not been made public.
Smartphone processors, commonly known as system-on-chips or SoCs, combine several critical functions into one component, including central computing, graphics, artificial intelligence processing and imaging capabilities.
Developing its own processors could give Xiaomi greater control over device performance and product development while strengthening its semiconductor supply chain. The strategy also reflects a wider shift among premium smartphone manufacturers seeking to differentiate their products and limit reliance on third-party chipmakers.
Xiaomi’s previous Xring O1 processor has already gained significant traction. During an earnings call last week, the company said cumulative shipments of Xring O1-powered products, including smartphones, tablets and smartwatches, had exceeded 1 million units since the chip was introduced.
Xiaomi has sold approximately 150,000 smartphones powered by the Xring O1 since its May 2025 debut, according to the sources.
The Xring O3 launch highlights Xiaomi’s growing semiconductor ambitions as the world’s third-largest smartphone vendor seeks greater control over the technologies powering its devices and competes more aggressively in the global premium smartphone market.


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