By | Semiconductor Industry Horizon
The 2025 Shanghai Auto Show grandly opened, with dazzling lights in the exhibition halls and carmakers full of vigor under the spotlight. This year's Shanghai Auto Show invited nearly 1000 domestic and foreign well-known enterprises from 26 countries and regions to participate, with a total exhibition area exceeding 360,000 square meters, setting new records for scale and area. A U.S. media reported: "Understanding the Shanghai Auto Show can predict the direction of the automotive industry in the next five years."
Since 1985, every Shanghai Auto Show has had new cars as the main highlight. However, this year, the booths of domestic chip companies unexpectedly became the "hidden C-position." The booths of domestic solutions such as Biwin Storage's automotive-grade self-developed eMMC and Black Sesame Intelligence's Huashan A2000 family were packed with people, receiving a flood of orders and cooperation intentions.
How did domestic automotive-grade chips transform from being an "optional choice" to a "must-have"? This auto show provided the answer.
Current Status Scan of Domestic Automotive Chips
Currently, the global automotive chip market is still dominated by overseas enterprises. According to IDC data, the top five vendors in the automotive semiconductor market are all from overseas: Infineon, NXP, STMicroelectronics, Renesas Electronics, and Texas Instruments, with their combined market share exceeding 50%.
However, domestic automakers are actively embracing domestic automotive chips. A UBS (UBS) research report found that all power semiconductors in BYD's best-selling electric vehicle "Seal" in China are supplied by Chinese vendors. The Automotive Chip Alliance's automotive chip white list 2.0 includes more than 2000 application cases and over 1800 products.
Semiconductor Industry Horizon visited several domestic chip companies, and there are three notable differences in the development of automotive chips this year.
First, unlike the past when there was "distrust" and "skepticism" towards domestic automotive-grade chips, now domestic automakers have transitioned from initially "cautious" to "trusting" regarding the products of local automotive-grade chip enterprises.
Biwin Storage's automotive-grade chip shipments have consistently ranked among the top domestically. At this auto show, Biwin brought forward its automotive-grade storage solution covering the entire scenario of intelligent connected vehicles. The product lineup includes eMMC, LPDDR, UFS, BGA SSD, and automotive-grade storage cards, widely applied in key scenarios such as smart cabins, autonomous driving, vehicle networking, and in-car recording, empowering more efficient and reliable automotive intelligence experiences.
In the communications field, ZTE showcased its three automotive chips: the wireless network connection modem car-to-cloud connection chip S1, the central computing platform SoC in-car connection chip M1, and the cabin-driving fusion SoC computing chip A1. In the smart cabin domain, Xingyi Technology demonstrated its own cabin-driving integration solution.
When discussing the shipment status of automotive chips, it is evident that the shipment volume of domestic chip enterprises' automotive chips is constantly increasing. According to General Manager Peng Peng of Biwin Storage: "Biwin's automotive-grade products have been mass-produced in major domestic host manufacturers since 2024, with shipments growing rapidly. By 2025, the shipment scale is expected to achieve a phased breakthrough, further increasing market share, and striving to become a key partner in the global intelligent automotive supply chain."
Xingyi Technology's Dragon Eagle One has accumulated shipments reaching the million level; Rockchip's RK3588M chip shipped 100,000 units in 2023 and 400,000 units in 2024, with expectations of shipping 700,000 units this year. Hua Semiconductor also disclosed: "The MCUs on-board last year's shipment volume was approximately 10 million, which increased to 20 million last year."
When asked whether there are still concerns when cooperating with automakers, Xingyi Technology responded: "We have long passed the customer validation stage. Since the release of Dragon Eagle One in 2021, it has been installed or designated in over 30 models across domestic and international series such as Geely LYNK & CO, Galaxy, and FAW Hongqi. It can be said that we have overcome various challenges to gain the trust of automakers and are moving forward."
Second, chip enterprises interact more closely with Tier 1 suppliers, but cautious automakers have already directly engaged with chip enterprises.
Most chip enterprises and automakers collaborate primarily through Tier 1 suppliers. After all, Tier 1 suppliers still have natural advantages: they are closer to automotive customers and better understand customer needs. As system-level solution providers, Tier 1 suppliers are more familiar with automaker technical standards and overall vehicle architecture, enabling efficient chip adaptation and verification.
It is understood that most of Black Sesame's clients are Tier 1 suppliers, such as Bosch, Continental, and Baidu. Some direct automotive clients also cooperate through the automaker's independently established intelligent technology subsidiaries. For example, most of the chips installed in LYNK & CO models are based on Black Sesame's collaboration with Eccentric Communications rather than being directly supplied to Geely. Hua Semiconductor's clients include Wuling, BAIC, Volkswagen, FAW, Dongfeng, Changan, BYD, SAIC, Geely, etc. In terms of cooperation, they work more with Tier 1 suppliers. However, due to Hua Semiconductor's early layout in the automotive-grade MCU field, some automakers specify their selection during the Tier 1 supplier对接 process.
It should be noted that automakers are gradually transforming and moving toward "de-intermediation." In the process of automotive chips going on board, the more link channels chip manufacturers and automakers can establish, the more advantageous positions they will occupy.
This aspect is done more comprehensively by Biwin Storage. From its client base, it covers leading domestic OEMs and Tier 1 suppliers, as well as all Tier 1 and Tier 2 clients around the host manufacturer's supply chain. It is understood that Biwin Storage currently follows a "three-in-one" approach: first, the host manufacturer, where Biwin Storage maintains very close cooperation with host manufacturers, having communication channels with the top ten host manufacturers; second, Tier 1/Tier 2, conducting R&D around host manufacturer clients; third, SoC factory, given the complementary nature of storage and computing, Biwin works closely with domestic SoC factories. The "three-in-one" approach enables Biwin Storage to handle interactions with automakers more flexibly.
Third, the speed of domestic chip shipments is accelerating, and the chip R&D cycle is also speeding up.
One can sense that as automakers' development cycles shorten, the demand for faster chip development cycles increases. For instance, SAIC's development cycle has shortened from 36 months at its earliest to 24 months, then 18 months, and now possibly to 15 months or even 12 months. This is both a challenge and an opportunity for domestic chip enterprises.
Automotive-grade storage chips, due to high reliability requirements, strict automotive-grade system control, complex customer demand analysis, and high entry barriers, require professional, persistent, and comprehensive investment in R&D manpower and resources across all fields. From demand analysis to mass production, the average development cycle reaches 12 months. Compared to emerging automotive chip enterprises, those with existing supply chains like ZTE, and even companies like Biwin Storage that simultaneously build supply chain vertical integration capabilities and autonomous packaging and testing factories, have significant advantages in automotive chip development. They not only can cooperate with automotive customers for rapid development but also flexibly meet customized customer demands.
New Products of Domestic Automotive Chips "Fierce Competition"
Different from previous auto shows, this year's Shanghai Auto Show is not just a solo performance by car manufacturers but a collective showcase by domestic chip enterprises. During this auto show, multiple domestic chip enterprises launched impressive new products.
In the automotive-grade storage sector, Biwin unveiled its nationwide self-developed automotive-grade eMMC chip, featuring a self-developed SP1800 controller chip paired with domestically high-quality wafers. Combined with Biwin's autonomous packaging and testing and local supply chain system, it creates a secure, self-controlled "Chinese solution." This product complies with the eMMC 5.1 standard, supports critical features such as HS400, boot partition, and RPMB, with a maximum capacity of 128GB, passing AEC-Q100 Grade 2 certification, ensuring stable operation in extreme environments ranging from -40°C to 105°C. Built-in SRAM ECC and Biwin's proprietary 4K LDPC error correction algorithm ensure data security while achieving industry-leading parallel processing performance, fully meeting the high-performance, high-reliability, and customized demands of core applications such as smart cabins, autonomous driving, IVI, infotainment systems, and T-BOX.
In the automotive-grade SoC sector, Black Sesame Intelligence introduced its pioneering "safe intelligence foundation" solution. It was learned from the exhibition booth that Black Sesame Intelligence plans to release a cabin-driving fusion platform reference design with Intel in the second quarter of 2025 and prepare for mass production of the cabin-driving fusion platform. Xingyi Technology released its latest AI cockpit chip X10, using 4nm advanced manufacturing processes, capable of deploying 7B multimodal large models on the edge, providing 40 TOPS NPU computing power. The X10 series chips are planned for mass production starting in 2026.
In the field of intelligent driving, Horizon Robotics brought its new urban auxiliary driving system Horizon SuperDrive (abbreviated as HSD) and the onboard intelligent computing solution Journey 6 series. Notably, Li Auto officially released the intelligent refresh version of Li Auto L6 at the Shanghai International Auto Show and announced the comprehensive upgrade of the next-generation Li Auto AD Pro auxiliary driving system with Horizon's Journey 6M.
The Aggressive Moment of Domestic Automotive-grade Chips
The bustling scene at the booths of domestic chip companies is not accidental but the result of technological breakthroughs, supply chain restructuring, and market choices working together. Within just a few years, domestic automotive-grade chips have evolved from "usable" to "good quality" and now "highly sought after," driven by multiple factors.
First, at this auto show, we can see that the effects of policy support are gradually becoming apparent, with domestic chip enterprises showing even stronger momentum. General Manager Peng Peng of Biwin Storage stated: "Biwin Storage has reached the second phase, where we can jointly develop technology and define products with customers. We are no longer in the passive phase of 'doing whatever the car manufacturer needs,' nor are we merely entering the market through replacement. This year, we are already discussing future architectures and designs with strong R&D capability car manufacturer clients. The future development of automotive chips will complement two approaches: both replacement and innovation."
Second, domestic chip enterprises are continuously increasing R&D efforts in automotive chips. Amidst the booming automotive industry, many enterprises view the automotive sector as their "second growth curve." Whether it's Biwin Storage, Hua Semiconductor, or ZTE, when asked about their layout plans, they all indicated that automobiles will be a key focus for their future development. However, different enterprises take different routes. One type of enterprise chooses to create general-purpose chips like Rockchip. Its RK3588 family has applications beyond automotive, including robotics, PCs, and edge computing devices. Another type of enterprise chooses to spin off sub-brands, such as Biwin Storage's sub-brand Biwin Tech. Focusing on automotive-grade chips allows them to target more precisely compared to general-purpose chips.
Finally, the uncertainty of the global supply chain is another significant factor. Against the backdrop of continuous fluctuations in the global semiconductor supply chain, automakers' requirements for chip supply stability have reached unprecedented heights. Biwin Tech has set a good example in this regard. Its newly released self-developed automotive-grade controller + exclusive firmware algorithms + autonomous packaging and testing achieves 100% national self-control. Furthermore, the integrated R&D and packaging and testing business model effectively ensures downstream customer order delivery efficiency.
It is worth noting that domestically, chip enterprises making automotive-grade chips are still operating at a loss overall. In discussions with multiple vendors, they all unanimously expressed that automotive-grade chips do not make money.
"Competition" is the consensus among all automotive manufacturers, and this is even more evident in the automotive chip sector. A chip manufacturer remarked: "The automotive field is a typical case of 'both, and, and.' Due to the massive investment in chips, when the shipment volume is not large enough, there is often an imbalance between input and output."
In such circumstances, companies making automotive chips can survive in only two ways: First, comprehensive layout enterprises, where the automotive sector is a "new touchpoint" for these enterprises, such as Biwin Storage. These enterprises have their primary revenue streams, complete product grades and market directions, and can rely on vast supply chain advantages. Some manufacturers' approach is to subsidize the automotive sector with their revenue to help their automotive-grade products grow. This makes them more grounded and confident compared to pure automotive chip enterprises. Second, pure automotive chip enterprises, such as Xingyi Technology, Xingyi Technology, and Black Sesame Intelligence. These enterprises depend more on financing or going public to sustain themselves until their product shipments reach a certain scale to support themselves. According to reports, a company specializing in automotive-grade chips has already received a massive order from Volkswagen Group Germany, ensuring sustained financial support for future R&D over the next few years.
Original Source: https://www.toutiao.com/article/7497445018672710194/
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