{"slug": "why-is-xiaomi-doubling-down-on-in-house-chips-despite-profit-slump", "title": "Why is Xiaomi doubling down on in-house chips despite profit slump?", "summary": "Xiaomi unveiled its flagship Xring O3 3nm AI processor for smartphones, scheduled to debut in September aboard its Xiaomi 18 Fold, alongside a 6nm Xring O100 AI accelerator and a 3nm Xring D100 chip for autonomous driving, with commercial deployment of the latter two next year. Analysts say the move positions Xiaomi in the top tier of China's self-developed mobile systems-on-a-chip, despite an earnings slump and rising component costs.", "body_md": "# Why is Xiaomi doubling down on in-house chips despite profit slump?\n\nChinese tech giant’s Xring O3 3nm AI processor scheduled to debut aboard folding smartphone in September\n\n[Iris Deng](/author/iris-deng)in Shenzhen\n\nXiaomi’s long-term push into proprietary silicon is laying the groundwork for complex artificial intelligence workloads on smartphones and cars, analysts say, as the Chinese tech giant doubles down on self-developed chips despite an earnings slump and soaring component costs.\n\nOn Monday it unveiled its flagship Xring O3 3-nanometre AI processor for smartphones, which is scheduled to debut in September aboard its Xiaomi 18 Fold smartphone.\n\nThe company has also introduced the Xring O100 – a 6nm AI accelerator designed to boost Xiaomi’s MiMo large language model when paired with the O3 – alongside a 3nm Xring D100 chip for autonomous driving. Xiaomi said both the O100 and D100 will be deployed commercially next year.\n\nIvan Lam, a senior analyst at Counterpoint Research, said Xiaomi’s semiconductor progress placed it in “the top tier of China’s self-developed mobile systems-on-a-chip (SoC)”.\n\n“In the current age of AI, on-chip AI performance has become even more critical as AI workloads are becoming more complex,” Lam said, adding that while semiconductor investments yielded no immediate financial returns, Xiaomi’s long-term commitment remained positive.\n\nXiaomi’s chip expansion comes as the global smartphone industry grapples with surging memory and component costs, squeezing profit margins across handsets and electric vehicles.", "url": "https://wpnews.pro/news/why-is-xiaomi-doubling-down-on-in-house-chips-despite-profit-slump", "canonical_source": "https://www.scmp.com/tech/tech-trends/article/3365179/why-xiaomi-doubling-down-house-chips-despite-profit-slump?utm_source=rss_feed", "published_at": "2026-08-25 07:31:02+00:00", "updated_at": "2026-08-25 07:42:37.147131+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-chips", "ai-products", "ai-infrastructure"], "entities": ["Xiaomi", "Xring O3", "Xiaomi 18 Fold", "Xring O100", "MiMo", "Xring D100", "Counterpoint Research", "Ivan Lam"], "alternates": {"html": "https://wpnews.pro/news/why-is-xiaomi-doubling-down-on-in-house-chips-despite-profit-slump", "markdown": "https://wpnews.pro/news/why-is-xiaomi-doubling-down-on-in-house-chips-despite-profit-slump.md", "text": "https://wpnews.pro/news/why-is-xiaomi-doubling-down-on-in-house-chips-despite-profit-slump.txt", "jsonld": "https://wpnews.pro/news/why-is-xiaomi-doubling-down-on-in-house-chips-despite-profit-slump.jsonld"}}