Xiaomi to Launch Custom 3nm SoC Chip in 2025

Android smartphone manufacturers typically rely on Qualcomm and MediaTek for ready-made chips, with most high-end models in 2024 and 2025 expected to feature Snapdragon 8 Elite and Dimensity 9400 chips. Xiaomi, a major player in the smartphone industry, is expected to follow suit. However, the company is likely recognizing that continued reliance on these partners will only increase costs, and the most effective way to boost profitability is to venture into the custom chip market.

According to recent reports, Xiaomi plans to launch its own 3nm SoC (System on Chip) in 2025, a move that is expected to cause concern among competitors. This processor could help Xiaomi enhance its self-sufficiency and stand out in the Android market, which is currently dominated by Qualcomm clients.

Industry sources confirm that Xiaomi is on track to release its custom SoC chip in 2025, with semiconductor supply chains confirming the company's plans for mass production. However, it remains unclear which device models will initially feature the new chip. In October, it was reported that Xiaomi had completed the wafer tape-out for its first 3nm chip, signaling that the next step is to secure a suitable foundry for mass production. Given Samsung's challenges in ramping up its 3nm GAA technology, TSMC is expected to be Xiaomi's only viable partner for mass production.

Xiaomi's decision to mass-produce its first 3nm SoC chip will likely face close scrutiny, as the U.S. government may require Chinese mainland entities to obtain licenses for chip shipments from TSMC. This adds another layer of complexity to Xiaomi's plans, but the company is undeterred in its pursuit of greater control over its supply chain.

Earlier this year, reports indicated that Xiaomi was planning to release a custom silicon based on TSMC's N4P process in the first half of 2025, with performance comparable to Qualcomm's older Snapdragon 8 Gen1. However, recent developments suggest that Xiaomi has now shifted to a more advanced 3nm process for its custom chip.

TSMC, which holds a dominant position in the chip manufacturing industry, has seen high utilization rates for its 5nm and 3nm capacities, driven by demand from companies like NVIDIA, Apple, and MediaTek. It is reported that TSMC has reallocated some of its 5nm production lines to 3nm production, underscoring the growing importance of 3nm chips in boosting the company's semiconductor revenue.

Xiaomi's Chairman and CEO, Lei Jun, stated in October that the company plans to invest approximately 30 billion RMB (about $4.1 billion) in R&D by 2025, up from 24 billion RMB this year. As the co-founder of Xiaomi nearly 15 years ago, Lei emphasized that the focus of this investment would be on core technologies, including artificial intelligence, operating system improvements, and custom chip development.