• Xiaomi’s 3nm chip breakthrough puts China on the semiconductor advancement map alongside global tech giants.
• The XRing O1 represents a $1.9B investment in Xiaomi’s strategy to reduce reliance on foreign chip suppliers.

Xiaomi’s 3nm chip development represents another stunning leap forward in China’s rapidly accelerating semiconductor advancement, coming just months after Huawei shocked global markets with its chip breakthroughs despite stringent US sanctions. 

The Beijing-based tech giant has begun mass production of its self-designed 3-nanometer system-on-a-chip (SoC), the XRing O1, catapulting Xiaomi into the rarefied air occupied by just three other companies worldwide—Apple, Qualcomm, and MediaTek. 

This achievement not only demonstrates China’s resilience in pursuing tech self-sufficiency but signals a shifting balance of power in global semiconductor design, all while navigating the complex web of US export restrictions that were specifically implemented to impede such progress.

In a May 20, 2025, post on Chinese microblogging site Weibo, Xiaomi founder, chairman, and chief executive Lei Jun confirmed local media reports that the XRing O1 was based on the 3-nanometre lithography process in semiconductor manufacturing. He also said the new integrated circuit (IC) would be installed in the company’s new 15S Pro smartphone and the Pad 7 Ultra tablet.

The achievement positions Xiaomi as only the fourth company globally to design a 3nm mobile chip for mass production, joining an exclusive club alongside tech powerhouses Apple, Qualcomm, and MediaTek. The development comes at a pivotal moment as China pushes for technological self-sufficiency amid tightened US export controls on advanced semiconductors.

Technical specifications and performance

According to Xiaomi, about 19 billion transistors are packed on the XRing O1, which puts the 3nm chip on par with the Apple-designed A17 Pro SoC that was launched in 2023 with the same number of transistors.

That reflects Xiaomi’s efforts to match the advances in semiconductor development of its major smartphone rivals, Apple, Samsung Electronics, and Huawei Technologies.

According to third-party chip benchmarking platform GeekBench and as quoted by the South China Morning Post, 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.

Semiconductor manufacturing process nodes, measured in nanometers (nm), refer to the scale of the features built onto a chip. Smaller nanometer numbers generally indicate the ability to pack significantly more transistors into the same area. This allows for improved power efficiency, higher performance, and enhanced capabilities compared to chips built on older process nodes.

Manufacturing challenges and geopolitical context

While Xiaomi has achieved a significant milestone in chip design, questions remain about the manufacturing process given current geopolitical tensions. Xiaomi did not provide more information about the XRing O1, especially regarding which contract semiconductor manufacturer is producing the locally designed mobile SoC. 

Semiconductor foundries in mainland China are not able to mass produce 3nm chips owing to US tech restrictions. The ability of Xiaomi to launch a 3nm chip for mass production, despite restrictions aimed at China’s semiconductor industry, lies in the specific scope of the US export controls and the nature of global manufacturing. 

Current US restrictions primarily target China’s access to advanced AI chips and, crucially, leading-edge manufacturing equipment that would enable China-based foundries (like SMIC) to produce chips below certain nodes domestically.

Industry analysts suggest Xiaomi has likely partnered with Taiwan Semiconductor Manufacturing Company (TSMC) for production, as the Taiwanese chipmaker is one of the few companies globally capable of mass-producing 3nm chips. 

This implies that Xiaomi, like many other chip designers globally (including US companies like Apple and Nvidia), is likely relying on a non-China-based foundry, almost certainly TSMC in Taiwan, to manufacture the XRing O1 chip using their 3nm process.

The development of the XRing O1 also represents a major financial commitment from Xiaomi. 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 investment aligns with statements from CNBC reporting that “Chinese technology giant Xiaomi will invest at least 50 billion yuan ($6.9 billion) over the next 10 years to develop its chips, CEO Lei Jun said in a Weibo post on Monday.”

For Xiaomi, the XRing O1 represents a move towards greater vertical integration, potentially reducing reliance on external suppliers and strengthening its brand by offering unique hardware capabilities in its devices. Succeeding in the high-end mobile SoC market will require not only competitive hardware performance but also robust software optimisation and ecosystem support, areas where rivals like Apple and Qualcomm have strong advantages built over many years.

China’s accelerating semiconductor advancement: National significance

The development has been celebrated within China as a significant technological achievement. State media, including China Central Television (CCTV) and Communist Party newspaper People’s Daily, this week lauded Xiaomi’s efforts to develop the XRing O1.

The new 3nm chip was touted by CCTV as “exciting news for the country’s semiconductor industry“, which it said surpassed 1 trillion yuan in export volume last year, as quoted in SCMP’s report.

Overall, the XRING O1 launch is a notable milestone for China’s domestic semiconductor design capabilities. State media have lauded the achievement, framing it as a significant step for the country’s chip industry and a breakthrough in “hardcore technology.”

Industry implications

It is almost inevitable that the launch will intensify competition in the premium smartphone segment, forcing traditional mobile chip suppliers to continue innovating rapidly to maintain their market positions. The long-term impact will depend on Xiaomi’s ability to consistently deliver competitive chips at scale and manage its supply chain relationships in a complex geopolitical environment.

Qualcomm, which has been a primary chip supplier for Xiaomi’s high-end smartphones, appears unconcerned about the development. Amid various reports about the XRing O1, 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. 

This statement was further reinforced by direct comments to CNBC, where Amon stated, “We remain a strategic supplier of chips for Xiaomi, and most importantly, I think Qualcomm Snapdragon chips are used in the Xiaomi flagships and will continue to be used in the Xiaomi flagships.”

The XRing O1 chip is scheduled to make its official debut at Xiaomi’s product launch event on Thursday, May 22, alongside the new 15S Pro smartphone and Pad 7 Ultra tablet. The tech community will be watching closely to see if the performance of these devices lives up to the significant expectations created by this semiconductor breakthrough.