From CNBC: 2024-08-28 23:01:06

At Nio’s tech day in Shanghai, VP Shaoqing Ren reveals the company’s 5nm chip for autonomous driving on July 27, 2024. Chinese electric car companies Nio and Xpeng are shifting towards in-house auto chips production to compete with Nvidia. Tesla’s success in self-driving prompts this move. Nvidia reports 37% revenue increase in the automotive segment to $346 million.

Nio has designed an automotive-grade chip using 5nm tech, breaking new ground in the Chinese market. Xpeng reveals its Turing chip but primarily works with Nvidia. Chinese electric car giants, like BYD, recognize the importance of custom chips for smart connected vehicles. U.S. restrictions on Nvidia chip sales boost focus on in-house tech.

Government incentives have led to over 50% penetration of electric cars in China’s auto market. Companies like Nio, BYD, and Huawei play a role in setting new tech standards, such as digital keys. The Car Connectivity Consortium, with members in China like Nio and Huawei, is developing new standards for connecting drivers to their cars securely.

Read more: China’s electric car race is becoming all about semiconductors