Rumor

Xiaomi to produce in-house Xuanjie O2 chips using TSMC N3P process for automotive and computing applications

Monday, January 12, 2026 at 09:55 PM

Xiaomi is reportedly moving toward in-house chip production with the Xuanjie O2 processor. The chip is expected to utilize TSMC's N3P manufacturing process and will be deployed across a wide range of hardware, including smartphones, PCs, tablets, and automotive systems.

Context

Xiaomi is accelerating its push for semiconductor independence with the development of the XRing O2 processor, built on TSMC’s advanced N3P process. Targeted for a 2026 rollout, this chip aims to move beyond the limited adoption of its predecessor, the O1, by powering flagship smartphones and expanding into tablets and other IoT platforms. By designing its own silicon, Xiaomi intends to gain tighter control over its system architecture, directly following the vertical integration models popularized by Apple. This move creates strategic friction for MediaTek and Qualcomm, who currently supply the bulk of Xiaomi’s mobile chips. While Qualcomm remains the primary partner for ultra-premium models as the industry pivots toward 2nm technology, MediaTek faces significant pressure in the mid-range and tablet segments where internal adoption is easier to implement. The successful deployment of the XRing O2 would allow Xiaomi to reduce third-party costs and optimize user experience, potentially disrupting the established supply chain dynamics for AI-driven mobile devices.

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