Localization of Automotive Chips

In recent years, China's automotive industry, especially the new energy vehicle industry, has developed rapidly with sales volume ranking first globally for eight consecutive years. However, this would not have been possible without the support of the automotive chip industry chain. Currently, the automotive chip industry accounts for about 30% of the automotive industry chain.

To address the shortage of automotive chips, the "Supply Chain Improvement Plan" project of the China Electric Vehicle 100 People Association held a seminar on June 8th in Tianjin to discuss the domestic production of automotive chips. Representatives from automakers, chip companies, and software companies attended the event to explore breakthrough paths for domestic chip production and to identify pain points in the development of domestic chip toolchains.

 

Domestic chip production faces challenges and pain points, such as a lack of application scenarios, a performance and cost gap compared to mature foreign solutions, and slow development of automotive software. However, domestic chip design companies have a proximity advantage and can receive feedback from customers more quickly than foreign counterparts.

 

To promote domestic chip production, industry players must collaborate and create a new ecology for the automotive chip industry. Tier 1 companies should act as intermediaries between automakers and chip manufacturers. Automakers should give domestic chip companies more opportunities to apply their products to identify issues, iterate, and improve. Furthermore, the government should provide subsidies and insurance for the application of domestic chips, especially during the initial stages.

 

Automakers have also provided suggestions for chip companies. They recommend defining standard specifications, establishing testing standards for chip products, and ensuring public safety and reliability. Consistency in chip parameters should be ensured during production.

 

Promoting domestic chip production is crucial for the development of China's new energy vehicle industry and the realization of national automotive brands. Collaboration among industry players is vital for the creation of a new automotive chip industry ecology. The government should provide support, and automakers should give domestic chip companies opportunities to apply their products.