Chinese electric vehicle (EV) manufacturers are intensifying their competitive edge by developing in-house semiconductor technologies, moving beyond the ongoing price war. Companies such as Nio and Xpeng have unveiled their proprietary automotive chips, marking a significant shift from reliance on Nvidia’s widely used chips.
Historically, major Chinese EV makers have depended on Nvidia, which reported a 37% year-on-year revenue increase to $346 million in its automotive segment last quarter. However, with the automotive sector increasingly focusing on advanced driver-assist technologies, companies are eager to differentiate themselves through custom chips.
Tu Le, founder of Sino Auto Insights, highlights that automakers are seeking to stand out by creating unique silicon solutions, unlike their competitors who utilize the same technology. While Tesla has successfully developed its own chips, Chinese automakers like Nio and Xpeng are following suit to enhance features and reduce supply chain risks.
Nio’s recent development of the NX9031 chip, utilizing advanced 5-nanometer technology, is a notable breakthrough. Florence Zhang from China Insights Consultancy notes this as a significant advancement in the domestic intelligent driving chip sector. Nio plans to integrate this chip into its high-end ET9 sedan, expected in 2025.
Xpeng has also introduced its Turing chip but remains partnered with Nvidia for its core semiconductor needs. Xpeng’s driver-assist technology is recognized as one of China’s best, reflecting the company’s strategic blend of in-house and external chip solutions.
As China’s EV market surges—over 50% of new passenger cars sold in July were new energy vehicles—automakers are setting new standards for automotive technology. This includes innovations such as digital keys and advanced driver-assist systems, which are shaping the future of smart, connected vehicles.
In summary, while the latest EV models from Nio and Xpeng showcase impressive technological advancements, the shift towards self-designed chips reflects a broader trend in the automotive industry’s evolving landscape.
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