Companies like Apple, Google, and Samsung already use custom chipsets for their phones. But last May, Xiaomi decided to toss its hat into the ring with its new XRING O1 chipset . The chipset made its debut in the Xiaomi 15S Pro , and now we’re hearing that Xiaomi is working on its successor. This is expected to come in the form of the Xiaomi XRING O2, but it appears that companies like Qualcomm need not worry about it.

Will the Xiaomi XRING O2 give Qualcomm competition?

According to reports , Qualcomm and other chipset makers like MediaTek won’t have to worry themselves about the Xiaomi XRING O2. This is because the chipset is rumored to be built on TSMC’s older 3nm N3P process. Considering that Qualcomm, MediaTek, Apple, Google, and Samsung are expected to chase 2nm chips this year, the XRING O2 won’t be able to compete on the same level.

This doesn’t mean that the XRING O2 is going to be a lousy chip. We’re sure it will be more than capable. However, from a marketing standpoint, it won’t come across quite as attractive. That and the fact that Xiaomi is currently using the chipset for themselves. They won’t exactly be fighting other companies for market share.

It could be similar to Google and Apple’s approach. Xiaomi might be more interested in a custom chipset because it allows them to expand the functionality of their devices. It also helps them reduce their reliance on Qualcomm and MediaTek, and less about competing with those companies in the semiconductor space.

Lastly, we should also take price into consideration. TSMC’s newer 2nm process is reported to cost much more than 3nm. This means that Xiaomi could be looking for a way to save some money. Plus, the 3nm process was used in chipsets from 2025’s flagships and those performed amazingly well. It won’t be as if Xiaomi is making a huge compromise here.

Moving beyond mobile

That being said, Xiaomi appears to have ambitions beyond just mobile devices. The report from DigiTimes also claims that the company is interested in using its chipsets in “non-smartphone” products. This means that the company could be evaluating its potential use in other devices like smart home tech, audio, and even automobile. The company already launched its own EV, so who’s to say that future XRING chips won’t be used to power their vehicles.