China EV Makers Advance Self-Designed Smart-Driving Chips
- tech360.tv
- Jun 17
- 3 min read
Chinese electric vehicle (EV) manufacturers are developing their own smart-driving chips, making custom silicon a key element in the country's competitive automotive market. This strategy aims to give carmakers more control over computing hardware while reducing dependence on external suppliers.
Li Auto unveiled its Mach M100, a 5-nanometre artificial-intelligence chip tailored for autonomous driving. This chip is for the carmaker's new L9 Livis SUV model.
The Mach M100 displayed a single-unit computing power of 1,280 trillion operations per second (TOPS). Li Auto stated the chip achieved an 82 per cent utilisation rate.
BYD debuted its Xuanji A3, a 4nm smart-driving chip now in mass production. Capable of supporting Level 3 and Level 4 autonomous-driving functions, a trio of Xuanji A3 chips working in tandem can deliver more than 2,100 TOPS of processing power, the company said.
Nio has introduced its own 5nm NX9031 chip. Xpeng is developing its proprietary Turing chip for next-generation intelligent-driving systems.
By designing their own chips, Chinese carmakers seek greater control over the computing hardware behind advanced driver-assistance systems. This also aims to reduce reliance on Nvidia and Horizon Robotics, a Hong Kong-listed Chinese automotive chip and software company seen as one of Nvidia’s key local challengers.
This push for self-reliance has intensified due to the widespread adoption of smart-driving technology across China. Features once exclusive to luxury models have now entered the mass market, increasing demand for more efficient and affordable computing hardware.
Horizon Robotics’ annual report stated the penetration rate of passenger cars equipped with intelligent driver-assistance functions reached 67.6 per cent in 2025. The share of new smart vehicles equipped with mid- to high-level systems, including highway and urban navigate on autopilot (NOA) systems, almost doubled to 42.6 per cent in 2025 from 21.6 per cent a year earlier.
The trend is particularly evident in more affordable vehicles. The segment below 200,000 yuan (USD 29,545) accounted for 65 per cent of China’s passenger-car sales, Horizon Robotics stated.
The penetration rate of mid- to high-level driver-assistance systems in this segment rose to more than 50 per cent by the end of 2025 from 5 per cent at the start of the year.
The mass-market shift creates pressure for carmakers to lower intelligent-driving hardware costs. Goldman Sachs analysts noted BYD’s God’s Eye B system, featuring urban navigate on autopilot (NOA), is an option across all models for 12,000 yuan.
The bank stated the package saw a take-up rate of more than 60 per cent on the Seagull and other models. This effectively brings the entry price of a BYD model with urban NOA to 78,800 yuan.
Goldman analysts suggested BYD’s smart-driving push could lower component costs and improve profit levels. They noted Nvidia and Horizon Robotics had gross margins of 75 per cent and 65 per cent respectively in 2025.
For carmakers, self-designed chips offer several potential advantages. These include lower long-term component costs, tighter integration between hardware and software, and greater control over product road maps.
Analysts at Huatai Securities said BYD’s Xuanji A3 could improve the carmaker’s smart-driving capabilities while lowering vehicle costs. They cited Nio’s in-house chip as an example, which saw a direct reduction of 10,000 yuan in per-vehicle costs.
Chinese EV makers are developing their own smart-driving chips to gain control and reduce reliance on external suppliers.
Companies like Li Auto, BYD, Nio, and Xpeng have announced or are developing proprietary chips with significant processing power.
The widespread adoption of smart-driving technology in China, especially in affordable vehicles, is driving demand for cheaper and more efficient hardware.
Source: SCMP
