Xiaomi refutes claims of using Arm-designed chip for XRing O1, highlights R&D effort

Xiaomi has refuted claims that its XRing O1 chip is a customized solution from Arm, clarifying that while it utilizes Arm's Cortex cores (Cortex-X925, Cortex-A725, and Cortex-A520), significant portions of the chip were designed in-house over four years, without using Arm's Compute Subsystems. Arm has updated its website to reflect that Xiaomi's chip is "self-developed silicon" built on Armv9.2 Cortex CPU cluster IP, Arm Immortalis graphics processing unit IP, and CoreLink Interconnect system IP.

Analysis

Xiaomi has officially refuted claims that its new XRing O1 system-on-chip (SoC) is an Arm-customized solution, emphasizing that the 3-nm chip was developed in-house over a period of more than four years. While the XRing O1 incorporates Arm's Cortex-X925, Cortex-A725, and Cortex-A520 cores, Xiaomi clarified it did not utilize Arm's Compute Subsystems, which are pre-validated, integrated hardware and software components. This signifies a substantial internal design effort beyond merely licensing pre-packaged solutions. Arm Holdings plc subsequently updated its website to describe Xiaomi's chip as "self-developed silicon" built on Armv9.2 Cortex central processing unit (CPU) cluster intellectual property (IP), Arm Immortalis graphics processing unit IP, and CoreLink Interconnect system IP, and positively commented on the XRing O1's performance and efficiency. This development underscores Xiaomi's strategic push towards greater semiconductor R&D capability and differentiation, similar to Apple's approach with its A- and M-series chips, though Xiaomi is licensing Arm's core designs rather than just the instruction set architecture. The distinction highlights Xiaomi's ambition to enhance its technological independence and potentially optimize hardware for its specific applications.

Key Decisions for Investors

• Investors should view Xiaomi's development of the XRing O1 as a significant step in its vertical integration strategy, potentially leading to enhanced product differentiation and cost management in the long term; monitor performance benchmarks and market adoption closely.
• For Arm Holdings (ARM), this clarification reinforces the robustness of its IP licensing model, demonstrating that even as clients like Xiaomi increase their in-house design efforts, they continue to rely on Arm's foundational CPU, GPU, and interconnect IP, which remains a core revenue driver.
• Consider the broader industry trend of major device manufacturers pursuing bespoke silicon solutions, often built upon Arm's architecture, as this may influence the competitive dynamics within the semiconductor sector and for original equipment manufacturers.