At Nio’s tech day in Shanghai on July 27, 2024, Shaoqing Ren, the company’s vice president for autonomous driving development, announced the completion of the NX9031, a 5nm automotive-grade chip. Nio and Xpeng, Chinese electric car manufacturers, are ramping up their technological capabilities by developing in-house chips to support advanced driver-assist functions. This shift comes as automakers aim to differentiate their products and reduce supply chain risks amid geopolitical tensions.
Historically, Chinese electric carmakers have depended on Nvidia chips, contributing significantly to Nvidia’s revenue from the automotive segment. However, Tesla’s move to in-house chip design in 2019 has spurred Chinese companies to follow suit. Expert Alvin Liu notes that customized chips offer enhanced features and mitigate supply chain risks.
Nio plans to integrate its 5nm chip into the ET9 sedan, slated for 2025, marking a significant milestone in China’s automotive chip development. While Nio leverages the 5nm technology, Xpeng revealed its Turing chip but continues to partner primarily with Nvidia.
Industry giants like BYD emphasize that semiconductors will drive the next phase of smart connected vehicles, a sentiment echoed by Wang Chuanfu, BYD’s founder. BYD also announced that its new off-road vehicle brand, Fang Cheng Bao, would use Huawei’s driver-assist system.
Despite U.S. restrictions on Nvidia chip sales to China, automakers remain unaffected as their current technological needs are met. However, the rising focus on AI-driven driver-assist tech is pushing Chinese companies towards in-house solutions, as exemplified by Xpeng’s collaboration with Alibaba Cloud for computational power.
The surge in electric car adoption, supported by government incentives, has increased industry involvement in setting new technological standards. This includes innovations like digital key technology, which the Car Connectivity Consortium, featuring major Chinese and global tech firms, is currently developing. This initiative aims to create seamless and secure connectivity across different devices and car brands.
Original Story https://www.cnbc.com/2024/08/29/chinas-electric-car-race-is-becoming-all-about-semiconductors.html
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