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American Focus > Blog > Economy > China’s electric car race is becoming all about semiconductors
Economy

China’s electric car race is becoming all about semiconductors

Last updated: August 30, 2024 8:32 pm
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China’s electric car race is becoming all about semiconductors
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Chinese electric car companies are ramping up their efforts to differentiate themselves in the competitive market by developing their own in-house chips for driver-assist functions. Nio and Xpeng have announced the readiness of their proprietary auto chips for production, moving away from relying on third-party suppliers like Nvidia. This shift is aimed at enhancing product superiority and customization while reducing supply chain risks from geopolitical tensions.

According to Tu Le, founder of consulting firm Sino Auto Insights, Chinese automakers are following the success of Tesla in full-self driving by focusing on self-developed system-on-chip technology. By designing their own chips, companies like Nio and Xpeng can tailor features to meet specific needs and market demands.

Nvidia, a major player in the automotive chips business, reported a significant increase in revenue from the segment, driven by the adoption of its technology by various automakers working on autonomous vehicle technology. However, with the rise of in-house chip development among Chinese electric car manufacturers, the landscape is expected to shift towards more competition and innovation in this space.

Nio recently unveiled its automotive-grade chip, the NX9031, utilizing cutting-edge 5 nanometer production technology. This development marks a significant breakthrough in the Chinese automotive industry, with Nio planning to integrate the chip into its high-end ET9 sedan set for release in 2025. Xpeng, on the other hand, did not disclose the nanometer technology for its Turing chip but highlighted the company’s strong driver-assist technology capabilities.

Industry experts believe that the shift towards developing in-house chips for driver-assist functions signifies a new phase in electric car development, focusing on smart connected vehicles. Companies like BYD have already embraced this trend, with founder Wang Chuanfu emphasizing the importance of semiconductors in the industry’s evolution.

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As Chinese automakers look towards the future, the focus on creating new tech and standards for the industry remains crucial. Government incentives and industry collaboration are driving innovations in areas such as keyless entry systems and secure car connectivity. The California-based Car Connectivity Consortium is actively working on new standards with the participation of Chinese companies like Nio, BYD, Zeekr, and Huawei.

In conclusion, the shift towards in-house chip development by Chinese electric car companies represents a significant milestone in the industry’s evolution. By leveraging advanced technology and customization capabilities, these companies are poised to lead the way in smart connected vehicles and driver-assist functions, setting new standards for the global automotive market. Apple, Google, and Samsung have recently joined an organization that is working to enable seamless connectivity between different brands of cars and smartphones. This organization, as revealed by Johnson, is aiming to facilitate the secure transfer of a digital car key from one device to another, even if they are from different manufacturers.

The chief goal of this initiative is to allow a driver of a Nio car, who uses a Huawei phone, to securely send their car key to a partner who uses an Apple phone and drives a Zeekr car. This interoperability between different brands of cars and smartphones is a significant step towards creating a more connected and integrated driving experience.

Johnson emphasized that digital key technology is becoming increasingly accessible, dispelling the notion that it is limited to specific brands or devices. With the participation of tech giants like Apple, Google, and Samsung, the organization is poised to drive innovation in the automotive industry and enhance the user experience for drivers.

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The integration of digital key technology into various car and smartphone models will revolutionize the way we interact with our vehicles. With the ability to securely share car keys between different devices, drivers can enjoy greater convenience and flexibility in managing their vehicles.

In conclusion, the collaboration between Apple, Google, Samsung, and other members of the organization signifies a significant step towards creating a more interconnected and user-friendly automotive ecosystem. By leveraging digital key technology, drivers can expect a seamless and secure driving experience across different brands of cars and smartphones.

TAGGED:carChinasElectricracesemiconductors
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