Xiaomi (HK: 1810) Launches In-House Xring O3 Chip and Partners with TSMC for Production

Xiaomi unveiled its Xring O3 chip on August 24, 2026, adding another in-house processor to its growing semiconductor effort. Sources familiar with the plans say TSMC will manufacture the chip using 3nm technology. The processor is expected to power Xiaomi’s next flagship foldable, with initial shipments estimated at 200,000 to 300,000 units. Developing its own silicon could give Xiaomi more control over performance, supply and hardware design.

Xiaomi Xring O3 Chip: What Xiaomi Announced and What We Know?

Xring O3 Moves Xiaomi Beyond the Xring O1

Xiaomi unveiled the Xring O3 on August 24, 2026, building on its effort to develop proprietary smartphone chips. Reuters reports that the processor will be used in an upcoming flagship foldable. Xiaomi is targeting initial shipments of around 200,000 to 300,000 units.

Xiaomi just unveiled its Xring O3 chip today. Here's what you need to know.

The Xring O3 is Xiaomi's new flagship smartphone processor, built on TSMC's 3nm process with a 10-core all-big-core CPU and a 16-core G2-Ultra NX GPU, its first chip of this kind.

It's the first mobile… https://t.co/fmacewb31b pic.twitter.com/aiSWf1qLLZ

— AGTP (@AGTPinsights) August 24, 2026

The O3 comes after the Xring O1, which has already passed 1 million cumulative shipments across smartphones, tablets and watches. That gives Xiaomi some experience with designing and deploying its own silicon before moving further into premium devices.

Why the 3nm TSMC Production Matters?

The Xring O3 is expected to be manufactured by TSMC using a 3nm process, according to sources familiar with the plans. A smaller manufacturing process can support stronger performance and improved power efficiency. It also allows Xiaomi to concentrate on chip design while TSMC handles the manufacturing side.

Xiaomi has not disclosed all of the production details publicly. For now, investors should treat the reported TSMC arrangement as source-based information.

Xiaomi’s TSMC Partnership Could Strengthen Its Semiconductor Strategy

Xiaomi is combining its own chip design with outsourced manufacturing. This approach avoids the huge cost of building and operating its own advanced semiconductor fabrication plants. It can also give Xiaomi greater control over processor features and how the chip works with its hardware and software.

The strategy comes as smartphone makers look for ways to reduce their reliance on Qualcomm and MediaTek. Huawei has already built a strong domestic chip strategy in China, while Apple and Samsung design processors for many of their premium devices. Xiaomi will need Xring to offer a clear advantage if it wants to compete more directly in this area.

The first major test could be Xiaomi’s upcoming foldable. A 200,000 to 300,000-unit production target is relatively modest, but the launch could give Xiaomi useful data on performance, manufacturing yields and consumer demand.

Xiaomi’s Chip Push Expands Beyond Smartphones

Xring O100 and Xring D100 Add to the Roadmap

Xiaomi has also introduced the Xring O100, a 6nm neural processing unit designed to support its MiMo AI model. The company also announced the Xring D100, a 3nm chip aimed at autonomous driving. Both are expected to enter commercial use in 2027.

The wider roadmap suggests Xiaomi wants its in-house chips to cover more areas of its ecosystem. AI processors could support its smart devices, while automotive silicon could be used in its growing electric-vehicle business. Having chips across several product categories could also give Xiaomi more opportunities to scale its internal semiconductor work.

What Xring O3 Means for Xiaomi (HK: 1810) Investors?

Xring O3 gives Xiaomi another possible source of growth, although its financial contribution may take time to develop. Xiaomi reported a 42.6% year-on-year decline in adjusted net profit to 6.2 billion yuan in Q2 2026. Revenue fell 6.1% to 108.9 billion yuan, while smartphone revenue declined 7.5%. EV revenue, by contrast, increased 15.9% to 23.9 billion yuan.

Xiaomi Stock Details and Forecast

Meyka’s 1810.HK technical page lists the stock at HK$27.96 and shows an overall Buy sentiment. Its RSI is 56.64, MACD is 1.18 and ADX is 33.01, pointing to positive momentum and a strong trend.

The main Bollinger levels are HK$22.68 support and HK$31.32 resistance. Meyka’s earlier 2026 model gave yearly targets as high as HK$66.36, although these forecasts are model-based and are not guaranteed.

Investors can use an AI stock analysis tool to compare these technical signals with Xiaomi’s fundamentals before making investment decisions.

What Meyka Says?

Meyka’s technical data points to improving momentum, while its earlier forecast supports a longer-term bullish case. Still, the recent decline in profit and the risks around execution and volatility remain factors investors need to watch.

Conclusion: Xiaomi’s Xring Bet Enters Its Next Phase

Xiaomi’s Xring O3 takes its proprietary silicon strategy further. The reported TSMC 3nm production gives the chip access to advanced manufacturing, while the upcoming foldable will provide a practical test of its performance and production capabilities.

The larger opportunity lies in Xiaomi’s expanding chip roadmap, which now covers smartphones, AI and vehicles. For investors, adoption, margins and execution will matter alongside the technology itself.

Disclaimer:

The content shared by Meyka AI PTY LTD is for research and informational purposes only. Meyka is not a financial advisory service, and the information provided should not be treated as investment or trading advice.