[News] Xiaomi XRING O3 Reportedly Features CXMT LPDDR6, TSMC 3nm, May Expand TSMC Ties to AI and Auto Chips

China is recalling over 4 million vehicles, including nearly 3 million Teslas, due to safety concerns over flush door handles. The recall also affects models from Xpeng, Xiaomi, and Geely. The feature, popularized by Tesla, is deemed a safety hazard.

Xiaomi unveiled the Xring O3 chip, its second in-house smartphone processor, aiming to strengthen its supply chain. TSMC will manufacture the chip using 3-nanometre technology, according to sources. The chip may power Xiaomi's upcoming folding phone, with shipment targets of 200,000-300,000 units. Xiaomi's Xring O1 chip has surpassed 1 million cumulative shipments across devices. Xiaomi and TSMC did not comment on the specifics.

Xiaomi's stock dropped 4.1% to HK$27.84 after recalling EVs in China due to door-handle safety issues, affecting several other automakers. The recall involves door handles that may be difficult to open in emergencies. The decline also occurred amid a broader selloff in Hong Kong tech stocks, with the Hang Seng index falling 2%.

Xiaomi's Q2 2026 smartphone shipments fell 26.3% YoY to 31.2M units, with market share dropping to 11.5%. Average selling price rose 25.9% to a record RMB 1,351. Revenue declined to RMB 42.1B. Competitors Samsung and Apple saw shipment growth. Xiaomi's overall revenue was RMB 108.9B, with EV deliveries up 28.2% YoY.

Tesla is recalling 2.98 million vehicles in China, including Models 3, Y, X, and S, due to door handle safety risks. Chinese authorities also announced recalls from other carmakers like Xiaomi, Leapmotor, Geely, and XPENG. The recalls follow planned regulations banning hidden door handles, which could hinder escape in emergencies. Tesla will address the issue with software updates.

Xiaomi is set to report Q2 results Aug 18. Shares in Hong Kong have risen nearly 20% since late June after prior losses tied to weak smartphone demand and high component costs. Analysts expect sales to fall 6.6% and gross margin 20.4%. EV delivery target 550,000 units may be harder, per Bernstein. Options imply a 3.6% post-earnings move.