The electric car market in China has been facing intense competition, with Xiaomi revealed that it suffered a USD 9200 loss per vehicle from April to June. However, the price war is not the only battleground, as the focus now seems to be turned to another front.

According to a report by CNBC, chip-powered tech features, such as the driver assist function, have gradually become the latest trend, while the development of in-house chips emerges as the possible match point for China’s EV makers. The reason behind: the need for customization and a must to reduce reliance on cutting-edge AI chips amid US- China tensions.

Until now, many leading Chinese EV manufacturers have relied on NVIDIA’s chips, with the AI heavyweight’s automotive chip business generating over USD 300 million in quarterly revenue in recent years, CNBC notes.

However, Chinese electric car start-ups Nio and Xpeng both announced progress on their self-developed chips lately, signaling the beginning of a new era in which in-house chips may become the mainstream for the industry.

In late July, Nio announced that it had taped-out its self-developed intelligent driving chip, Shenji NX9031, which is manufactured with 5nm node. The chip is said to be integrated into the company’s ET9 model, which is scheduled for delivery in 2025.

Citing industrial specialists, CNBC states that the move marks the first time that 5nm has been used in the Chinese automotive industry. For now, 3nm node is primarily utilized in smartphones, personal computers, and artificial intelligence-related applications.

On the other hand, another China’s EV start-up, XPeng Motors, announced in late August that its first AI chip, Turing, has been successfully taped-out. It is worth noting that XPeng has a strong relationship with NVIDIA, and Xpeng’s former head of autonomous driving joined Nvidia last year, CNBC reports.

In 2019, Tesla has reportedly moved away from using NVIDIA’s chips to developing its own, with a focus on advanced driver-assist functions. Citing an industrial specialist, CNBC suggests that Tesla and Chinese EV startups are expected to compete by designing their own chips, while traditional automakers will likely continue to depend on NVIDIA and Qualcomm for the foreseeable future.

The report does not anticipate a significant impact on NVIDIA in the short term, as Chinese automakers are expected to test new technology in small batches within the high-end segment of the market.

Anyhow, the reason behind the wave of self-developing chips for Chinese EV makers may be that it would be difficult for a company to differentiate itself if it uses the same silicon to power its infotainment and intelligent driving systems. By designing their own chips, Chinese automakers can customize features and mitigate supply chain risks associated with geopolitical tensions.

According to the report, U.S. restrictions on NVIDIA’s chip sales to China have not directly impacted automakers, as their vehicles have not yet required the most advanced semiconductor technology.

However, with a growing emphasis on driver-assist functions, which depends heavily on artificial intelligence—a key area in the U.S.-China tech rivalry—Chinese automakers are now turning to in-house technology.

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(Photo credit: Nio)

According to a report by 36Kr, China’s EV maker, XPeng Motors, has successfully completed the tape-out process for its self-developed intelligent driving chip.

Sources cited by the report further reveal that XPeng’s intelligent driving chip is specifically designed to meet AI demands, including end-to-end large models. The product is considered to be is a central computing architecture chip that supports integrated cabin and driving functionalities.

The AI computing power of this chip is said to be equivalent to that of three mainstream intelligent driving chips.

Additionally, the report mentions that on August 27th, during XPeng’s 10th anniversary and the launch event for the M03 model, XPeng Motors will officially release details about its self-developed chip.

In response to the rumors surrounding the unveiling of XPeng’s self-developed chip, as per the report, XPeng’s Chairman and CEO hinted on his personal social account that the company certainly won’t disappoint.

Previously, NIO, another automobile manufacturer in China, had also announced the successful tape-out of its 5nm autonomous driving chip, the NX9031.

The tape-outs of self-developed chips marks the beginning of a new phase in which automakers are further competing to enhance the efficiency of intelligent driving software and hardware.

Per a previous report by 36Kr, it was noted that XPeng began building its chip team in 2020. Initially, XPeng collaborated with the U.S. chip design company Marvell, but the partnership did not go smoothly.

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(Photo credit: XPeng)

According to Chinatimes’ report, NVIDIA, the powerhouse in the AI domain, has recently announced recruitment initiatives in China, signaling an expansion of its autonomous driving team to propel the arrival of the AI-defined automotive era.

With a total of 25 positions across five departments, the focus is primarily on fields such as autonomous driving software, algorithms, and more, with job locations spanning Beijing, Shanghai, and Shenzhen.

The five departments open for recruitment at NVIDIA encompass the Autonomous Driving Software Group, Autonomous Driving Platform Group, System Integration and Testing Group, Map and Simulation Group, and the Product Group.

While each department has a varying number of open positions, the collective count reaches 25. Notably, within less than a day of posting the recruitment information on LinkedIn, NVIDIA has received over 100 resumes, indicating significant interest in the roles.

According to NVIDIA’s introduction, the mission of their autonomous driving team is to design, create, and deploy the safest and most advanced artificial intelligence-driven systems for automation and autonomous vehicles.

The scope of their work spans various modes of transportation, ranging from passenger cars to commercial vehicles and robot taxis. Safety is their top priority, whether it involves simultaneously training and testing AI in data centers or performing real-time data processing in vehicles.

NVIDIA asserts that as a leader in AI and accelerated computing, their autonomous driving solutions are global in scope. They aim to collaborate with automotive manufacturers to create value for users worldwide on the journey from L2 to L4 autonomy levels.

On the other hand, the team is led by Wu Xinzhou, who resigned from his position as Vice President of Autonomous Driving at XPeng Motors in August of this year.

Wu aspires for the Chinese autonomous driving team to become a core force propelling NVIDIA’s autonomous driving products to commercialization. He envisions leveraging China’s talent pool and experience to collaboratively create globally competitive autonomous driving products.

Wu also outlined specific requirements for prospective candidates, emphasizing the need for a solid professional background, strong self-motivation, a relentless pursuit of excellence in technology and product development, alignment with NVIDIA’s diverse work environment, and excellent communication skills to engage effectively with colleagues from different backgrounds.

(Photo credit: Nvidia)

According to Yahoo’s report, recent developments in China’s automotive industry, particularly the electric vehicle sector, have been a mixed bag. While some companies have reported impressive export performance and surging delivery volumes, the overall market has faced challenges due to weak consumer demand and intense price wars.

Even NIO, which had previously pledged to enhance efficiency without layoffs, recently announced a workforce reduction of approximately 10%, affecting around 3,000 employees. This unexpected move has sent shockwaves through the industry and suggests that a layoff storm may be approaching the Chinese automotive sector.

Amidst numerous recent developments in the Chinese auto market, the most widely discussed topic is the announcement by NIO’s Chairman, William Li, regarding a workforce reduction of approximately 10%, with specific adjustments to be completed by November.

NIO, known as a market favorite and listed in both the U.S. and Hong Kong, has been considered one of the leading players in China’s new force of automotive companies. However, it now finds itself in the challenging position of staff downsizing, signaling a potentially tough year-end for China’s automotive industry.

While NIO, XPeng, and Li Auto, often hailed as representatives of the new forces in China’s automobile industry, had been at the forefront, NIO’s performance in 2023 seems to be lagging behind its peers.

In contrast to Li Auto, which has seen ten consecutive months of rising sales figures this year, and XPeng, which achieved a 292% year-on-year increase in October and set its record for single-month deliveries, NIO’s performance has been more volatile. Since reaching a peak delivery volume of 20,462 vehicles in July, NIO has struggled to maintain a consistent delivery rate of 20,000 vehicles per month.

Additionally, NIO’s losses have continued to grow quarter by quarter, with the company posting over ¥20 billion in net losses over the past year. In the same period, Li Auto recorded nearly ¥2 billion in profits, while XPeng faced losses of nearly ¥10 billion. Consequently, NIO holds the distinction of being the leader in losses among the new energy vehicle manufacturers. NIO’s layoffs serve as a cautionary signal, highlighting the pressing need to cut costs and enhance efficiency.

Amid China’s economic slowdown and intensified market competition, NIO’s challenges represent just a microcosm of the broader Chinese automotive industry. It’s not just NIO; in 2023, several automotive companies have already begun layoffs or faced closures. Examples include Levdeo, which filed for bankruptcy; WM Motor, which already closed its doors; and Enovate, which announced a suspension of operations.

Furthermore, the chill in the market is also affecting automotive supply chain companies. An industry insider candidly revealed that except for BYD and Li Auto, most car manufacturers are in the process of downsizing, indicating that the Chinese automotive industry is currently experiencing a major shake-up and a fierce battle for survival.

(Photo credit: Pixabay)