According to sources, Chinese smartphone manufacturer Xiaomi (1810.HK) opened a new tab on Monday and unveiled a new version of its in-house Xring handset processor. The company believes that having more control over key components will strengthen its supply chain and lessen its reliance on outside chip suppliers.
The Xring O3 is the most recent development in Xiaomi’s efforts to join competitors Apple (AAPL.O), Samsung Electronics (005930.KS), opens new tab, and Huawei in creating their own chips. This comes a year after Xiaomi introduced its first proprietary smartphone processor, the Xring O1.
Systems-on-a-chip (SoC) smartphone processors integrate computing, graphics, AI processing, and photography capabilities into one unit.
According to two people familiar with the situation, TSMC (2330.TW) will use its 3-nanometer production technology to create the new chip.
Xiaomi may have more control over product features and more negotiating leverage with suppliers if it develops more chips internally.
Because the plans are confidential, the sources declined to provide their identities. Requests for comment on the manufacturer, production technology, and shipment targets of the chip were not immediately answered by Xiaomi or TSMC.
According to one source, shipments of Xiaomi’s forthcoming flagship folding phone are anticipated to be between 200,000 and 300,000 units.
Its entry into the more expensive foldable phone market could make competition with Huawei more intense.
According to research firm Smart Analytics Global, Huawei shipped 1.6 million foldable phones in China in the second quarter, giving it a 68% market share, followed by Honor with 13.7% and Oppo with 8.5%.
