Chinese Automakers Strive Towards Domestic Chip Integration by 2026
As reported by Nikkei, leading Chinese automakers like SAIC Motor, Changan, Great Wall Motor, BYD, Li Auto, and Geely are gearing up to introduce vehicles equipped entirely with domestically produced chips, with plans for mass production as early as 2026.
The ambitious goal set for achieving 100% domestically developed automotive chips by 2027 marks a significant shift in policy. This target, although not mandatory, serves as a catalyst for companies to align with Beijing’s strategic objectives, encouraging the adoption of locally made chips among Chinese automakers.
To support this initiative, automakers are already taking proactive measures. Companies such as GAC Group are collaborating with Chinese foundries like SMIC and CanSemi Technology to evaluate the complete automotive chip supply chain and validate locally developed alternatives.
China’s major automakers, including SAIC, FAW Group, GAC Group, BYD, Geely, Changan, and Great Wall, have been urged by the government to expedite the transition to domestically produced chips, as highlighted in the Nikkei report.
Despite the current reliance on foreign-made chips, particularly for autonomous driving systems, Chinese automakers are making strides in chip development. EV manufacturer XPeng, as reported by SeekingAlpha and Financial Times, is pioneering advanced processors for Volkswagen. XPeng’s AI-focused Turing chips are designed to surpass industry giants like NVIDIA and drive the next wave of intelligent vehicles. Volkswagen’s strategic investment of $700 million for a 4.99% stake in XPeng further solidifies their collaboration in developing EVs for the Chinese market.
