Xiaomi Corp (小米) launched a mobile processor for its marquee devices, putting pressure on Qualcomm Inc and MediaTek Inc (聯發科) which for years supplied the key component to the Chinese company.The Xring O3 system-on-a-chip advances Xiaomi’s in-house semiconductor design efforts with more power-efficient image processing and better artificial intelligence capabilities, the Beijing-based company said in a post on Chinese social media platform Weibo yesterday.Xiaomi’s new silicon is made using a 3-nanometer fabrication process, according to a WeChat post by founder Lei Jun (雷軍). That’s closer to the node used for Apple Inc’s most recent A19 Pro chips and well ahead of its biggest home rival Huawei Technologies Co’s (華為) in-house designs. Xiaomi has contracted Taiwan Semiconductor Manufacturing Co (台積電) to manufacture the chips, Reuters reported.

Xiaomi Corp smartphones are displayed at one of the company’s stores in Beijing, China, on Nov. 14 last year.

San Diego, California-based Qualcomm and Taiwan’s MediaTek have long provided Xiaomi’s key processors. The Chinese company, which also designs and produces electric vehicles, is building on years of its own research on semiconductors to lower reliance on foreign chips. Having an in-house chip for its flagship products would strengthen Xiaomi’s bargaining position with suppliers and boost its consumer appeal in a fiercely competitive market.Rival Huawei uses self-developed Kirin processors in its premium phones after a series of US restrictions cut it off from key global suppliers including Qualcomm. In contrast, Xiaomi isn’t subject to sanctions preventing it from contracting with international suppliers.