Xiaomi's Next Chip: Why Sticking to 3nm Might Be a Smart Move

Xiaomi is working on a new chip, the XRING 02, expected to launch in 2026. Unlike its competitors, Xiaomi is not jumping to the latest 2nm technology. Instead, it's sticking with TSMC's 3nm process. This might seem like a step back, but there are good reasons for it. First, cost is a big factor. Making chips on the 2nm process is expensive. Each wafer costs around $30, 000, and that's before the millions spent on testing. For a company like Xiaomi, this is a huge investment. By sticking with 3nm, they can save a lot of money. Another reason is the lack of specialized tools. Due to U. S. export controls, Chinese companies have limited access to advanced chip-making equipment. Without these tools, developing a 2nm chip is nearly impossible for Xiaomi. Xiaomi's XRING 02 won't just be in smartphones and tablets. The company is exploring its use in cars and other devices. This means the chip needs to be versatile and reliable. Developing it for multiple uses will take time and resources, possibly delaying its release. Some might see this as Xiaomi falling behind. But it's also a strategic move. By focusing on the 3nm process, Xiaomi can reduce its dependency on other chip makers like Qualcomm and MediaTek. This gives them more control over their products and technology. In the end, Xiaomi's decision to stick with 3nm might be a smart one. It allows them to save money, overcome technical challenges, and explore new markets. While they might not be at the cutting edge, they're making a move that makes sense for their business.