Xiaomi Launches Xring O3 SoC at TSMC's 3-Nanometre Facility
August 24, 2026 - 2:20 pm
Xiaomi has unveiled the Xring O3, a system-on-chip (SoC) to be manufactured by TSMC using its cutting-edge 3-nanometre process. According to sources familiar with the matter who spoke to Reuters, this chip integrates computing, graphics, AI processing, and imaging onto a single die.
The O3 is destined for Xiaomi's upcoming flagship folding phone, with estimated shipments ranging from 200,000 to 300,000 units. While this volume may seem modest compared to Xiaomi's quarterly handset sales of tens of millions, it signifies a strategic move.
Custom silicon at these scales is not primarily about cost savings but rather about demonstrating technical capability. Apple, Samsung, and Huawei have all followed this path, aiming to differentiate their flagships and reduce reliance on external suppliers.
Choosing a folding phone as the initial platform aligns with this strategy. Foldables, being low-volume, high-margin devices, provide a safer environment for testing first-generation chips.
The decision to stay with TSMC's 3nm family, instead of progressing to 2nm, positions Xiaomi behind the parts that will define next year's premium Android tier in terms of performance. Cost considerations play a role here, as TSMC navigates rising manufacturing costs and limited wafer allocation.
However, Xiaomi enjoys an advantage over its Chinese rival, Huawei. Unrestricted by US export controls, Xiaomi can access TSMC's leading-edge capacity, while Huawei navigates around the export control regime with China's domestic foundries.
The launch of the Xring O3 marks a significant step for Xiaomi in its quest to create advanced silicon, showcasing capabilities that Huawei, constrained by external factors, cannot currently match.