Technology giant Xiaomi has officially started the mass production of its first self-developed advanced mobile chip: the Xring O1. The announcement was made by Xiaomi’s founder and CEO Lei Jun via his personal Weibo account on Tuesday, marking a significant step in the company’s ambition to power its high-end devices independently and heighten its position in the highly competitive Chinese market.

Manufacturing Details and Initial Product Integration

This specific chip is being manufactured by Taiwan Semiconductor Manufacturing Company (the world’s leading contract chipmaker), leveraging the advanced 3-nanometer process, according to sources familiar with the matter. Lei Jun discreetly revealed that the initial devices that will feature the Xring O1 are the upcoming Xiaomi 15S Pro Smartphone and the Xiaomi Pad 7 Ultra tablet, and both are expected to launch this Thursday.

Financial Investment Behind the Chip

The significant investment highlights Xiaomi’s commitment to this enterprise. On Monday, Lei Jun revealed that the company had already invested 13.5 billion yuan ($1.87 billion) in the development of the Xring O1 and intends to allocate at least 50 billion yuan more to chip design over the next decade, a vision that aligns with its broader chip ambitions and the recent launch of the Xiaomi SU7 EV.

Xiaomi’s Chip Strategy in China

This development doesn’t act in favour of the intensifying competition in China’s smartphone market. While the United States’ export restrictions have impacted TSMC’s ability to manufacture advanced AI chips for some Chinese clients, smartphone chips have mostly remained excused. Currently, Qualcomm continues to be Xiaomi’s primary supplier of mobile processors, with Qualcomm’s revenue from China seeing a substantial 46% surge to $17.8 billion in the fiscal year ending September 29, 2024.

Strategic Implications for Xiaomi’s Future

Xiaomi’s entry into the high-end mobile chip market with the Xring O1 positions the company to exert greater control over its product development, optimize performance specifically for its devices, and reduce its dependence on external suppliers like Qualcomm at length. The upcoming launch event on Thursday is anticipated to provide further vital details regarding the capabilities of the Xring O1 and Xiaomi’s strategic roadmap in the competitive landscape of mobile technology.