Nio Plans to Bring in Strategic Investors for Chip Project
Nio, the electric vehicle (EV) maker, is reportedly planning to bring in strategic investors for its chip-related business, according to a report from local media outlet LatePost. The company’s chip team, currently operating as a business unit, is set to become a separate project entity in the future.
The report states that Nio intends to cede a small stake to strategic investors while retaining control over the chip project entity. However, when asked about this information, Nio sources referred to it as speculative.
There are different speculations within the industry regarding how Nio may proceed with this plan. One possibility is that Nio will only bring in external funding, with equity in the project entity shared between Nio and external investors, while keeping the in-house chip research team within the Nio system.
Another scenario could involve Nio setting up an employee shareholding platform to hold all shares of the project entity alongside Nio and external investors, essentially leading to a spin-off of the business.
Nio’s chip R&D program has made significant strides, with the world’s first automotive-grade 5-nanometer smart driving chip, Shenji NX9031, already in mass production and deployed in vehicles. This achievement has attracted the interest of industrial investors.
The company launched its chip program in 2021 and introduced its first in-house chip, Shenji NX9031, in December 2023. The latest model, ET9, which began deliveries recently, is powered by two Shenji NX9031 smart driving chips. Nio claims that a single Shenji chip has the computing power equivalent to four mainstream autonomous driving chips combined.
In a recent update to its main-selling models, Nio replaced the smart driving chips from four Nvidia Orin X chips to one Shenji NX9031. This move is expected to enhance the performance and efficiency of Nio’s vehicles.
Overall, Nio’s chip project has garnered attention for its technological advancements and market potential. The company’s decision to bring in strategic investors reflects its commitment to further developing and expanding its chip-related business.
