Will Xiaomi's 3nm chip push accelerate China's technology independence?
The XRing O1 chip will debut in premium Xiaomi devices, potentially reshaping partner strategies and supply chain dynamics.
Xiaomi's announcement that it has begun mass production of its self-designed 3nm XRing O1 system-on-a-chip marks a pivotal moment in China's pursuit of technological self-sufficiency.
The development positions the Chinese smartphone giant as only the fourth company globally—alongside Apple, Qualcomm, and MediaTek—to design cutting-edge 3nm mobile processors for mass production.
Xiaomi's move toward vertical integration signals potential changes in how the company approaches product differentiation and market positioning. The XRing O1, which packs 19 billion transistors comparable to Apple's A17 Pro, will power Xiaomi's upcoming 15S Pro smartphone and Pad 7 Ultra tablet, launching May 22.
According to third-party chip benchmarking platform GeekBench, the XRing O1's results in single-core and multi-core tests place it among the world's top-performing ICs, rivalling the performance of Apple's new A18 series and Qualcomm's Snapdragon 8 Elite mobile SoCs.
This performance parity with premium Western chips could enable Xiaomi to compete more aggressively in high-end market segments globally.
Supply chain implications
While Xiaomi has achieved this design milestone, semiconductor foundries in mainland China are not able to mass produce 3-nm chips owing to US tech restrictions. This means Xiaomi is likely relying on Taiwan Semiconductor Manufacturing Company (TSMC) for production—the same foundry used by Apple and other Western companies.
The situation highlights the complex nature of current US export controls, which primarily target manufacturing equipment rather than design capabilities or the ability to contract with foreign foundries. This allows Chinese companies to continue advancing their semiconductor designs while leveraging global manufacturing networks.
Investment scale and commitment
Xiaomi's commitment runs deep. Xiaomi's Lei on Monday said the company has already spent 13.5 billion yuan (US$1.9 billion) on the research and development of the XRing O1. In 2025, the firm put in place a 10-year, 50 billion yuan spending programme for semiconductor development.
This substantial investment indicates Xiaomi's serious intent to reduce dependence on external chip suppliers, potentially affecting relationships with traditional partners like Qualcomm. However, Qualcomm chief executive Cristiano Amon was quoted as saying at this week's Computex 2025 trade show, which runs from May 20 to 23, that the US firm maintains a solid partnership with Xiaomi.