Xiaomi Set to ‘Officially Unveil’ Its Custom 3nm Chipset Next Year, Aiming to Compete with Qualcomm and MediaTek
Traditionally, Android smartphone manufacturers have depended on Qualcomm and MediaTek for their readily available chipsets, with the Snapdragon 8 Elite and Dimensity 9400 expected to dominate the high-end market in both this year and the next. While Xiaomi has largely aligned with these two companies, it appears to be recognizing the increasing costs associated with this reliance. To enhance its profitability, the company is likely to accelerate its custom chipset development.
Recent reports indicate that Xiaomi plans to officially launch its 3nm silicon next year, which is likely to create considerable unease among competitors. Specific timelines for the launch have not been disclosed, but it is anticipated that Xiaomi will utilize one of TSMC’s 3nm variants for its custom chipset.
In October, it was reported that Xiaomi had completed the tape-out of its first 3nm chipset, indicating that the next step is to establish a partnership with a foundry to commence mass production. The detailed report does not specify which quarter the announcement will occur, prompting additional inquiries as the situation develops.
**Related Story:** TSMC Reportedly Achieves “100% Utilization” for 5nm & 3nm Supply, Highlighting Its Market Dominance
Recently, TSMC informed its Chinese clients via email that they would no longer receive shipments of 7nm chips, a directive seemingly from the U.S. Given the significant challenges that Samsung is encountering in improving the yield of its 3nm GAA technology, TSMC remains the sole viable partner for Xiaomi for the mass production of wafers.
However, this shift raises concerns regarding potential trade sanctions against Xiaomi. The situation is plausible considering that various Chinese companies, including Huawei, may attempt to use Xiaomi as a conduit for procuring advanced technology.
Xiaomi's commitment to mass-producing its first 3nm SoC will undoubtedly be subject to rigorous examination, with the risk that the U.S. government could necessitate licensing for Xiaomi to receive chip shipments from TSMC.
**News Source:** DigiTimes
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**Further Reading**
TSMC Anticipated to Increase 3nm & CoWoS Pricing Heading into 2025 Due to Significant Market Demand & Supply Chain Issues
Demand for TSMC's 2nm Node Surges Higher than for 3nm Even Pre-Launch
Xiaomi Allegedly Successfully Completed the Tape-Out of Its First 3nm Chipset, Marking a Significant Milestone, Yet Specification Details Remain Unknown
Dimensity 9400 Unit Price Projected to Rise by 20 Percent Thanks to TSMC’s 3nm ‘N3E’ Process, While Still More Economical than the Snapdragon 8 Gen 4
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