"To become a top global chip supplier, we need to expand from the Chinese market to the global market."

[Source/Observer Network Xiong Chaoyan] In order to promote global sales, the Chinese automotive chip company SemiDrive will begin supplying its intelligent cockpit system-on-chip (SoC) to an unnamed European automobile manufacturer by the end of next year. This marks the company's first cooperation on the European continent. On June 17, the Hong Kong South China Morning Post reported this news citing a senior executive of the company.

Eugene Wang, International Automotive Business Manager of SemiDrive, said that these chips will be used in several models produced and sold by the automaker in Europe, the Middle East, and Africa, including sedans and SUVs. He added that these vehicles are expected to adopt its X9 series intelligent cockpit processor, which integrates high-performance CPU, GPU, artificial intelligence (AI) accelerators, and video processors designed specifically for advanced cabin applications.

"This will be our first time providing chips for foreign original equipment manufacturers (OEMs) for large-scale production overseas," Eugene Wang said during a break at the four-day 2025 International Auto and Supply Chain Expo held in Hong Kong. "To become a top global chip supplier, we need to expand from the Chinese market to the global market."

Notably, according to a June 17 report by Nikkei Asia, Chinese automobile manufacturers such as SAIC Group, Changan Automobile, Great Wall Motors, BYD, Li Auto, and Geely are preparing to launch models equipped with 100% domestically made chips, with at least two brands planning mass production as early as 2026.

The report cited insiders revealing that the first batch of mass-produced models will be updated versions of existing models from a few brands, followed by more manufacturers joining in. Against the backdrop of tense Sino-US relations, these efforts are part of China's grand vision to enhance its chip self-sufficiency capabilities.

Photo: Visitors tour exhibits at SemiDrive's booth at the 2023 Shanghai Auto Show. South China Morning Post.

As introduced, SemiDrive was founded in 2018 and is headquartered in Nanjing, Jiangsu Province. The company focuses on developing high-performance automotive-grade chips for intelligent cockpits and microcontroller units (MCUs). Since 2019, SAIC Group, Sequoia Capital, Walden International, and Matrix Partners have participated in multiple financing rounds of the company.

To date, SemiDrive has launched four series of chip products: including intelligent cockpit chip X9, autonomous driving chip V9, central gateway chip G9, and high-performance MCU chip E3. Eugene Wang stated that since 2021, the company's chip shipments have exceeded 8 million units, applied in over 100 models from carmakers such as Chery Automobile, Changan Automobile, SAIC Group, GAC Group, BAIC Group, and Li Auto.

He added that less than 10% of these chips are used in cars for export markets, so this collaboration with the European automaker is an important milestone in its global expansion plan. The company's goal is to "establish connections with foreign automakers to explore larger markets."

According to data from the European Automobile Manufacturers Association, last year, global automakers sold 74.6 million vehicles, with China accounting for over 30% of the market share. However, the Chinese passenger vehicle intelligent cockpit SoC market is still dominated by American tech giant Qualcomm.

The Shenzhen-based research institute Gaogong Industry Research Institute (GGII), whose data shows that Qualcomm ranked first last year with a market share of 32%, followed by NXP of the Netherlands (19%) and Renesas of Japan (13%), while SemiDrive led among domestic suppliers in China with a market share of 3.5%.

The South China Morning Post pointed out that under the policy push for semiconductor self-reliance in China, last year's domestically produced automotive chips met 10% of domestic demand, doubling from 5% when the localization plan was initially implemented in 2021.

Nikkei Asia reported last year that China aims to achieve 20% to 25% of car chips being locally sourced by 2025. Now, according to a June 17 report by Nikkei Asia, three sources disclosed that China's latest policy target is to achieve 100% self-developed and manufactured automotive chips by 2027, significantly accelerating the previous set goals.

The sources also noted that the 100% target is not mandatory but more like an incentive framework aimed at encouraging companies to demonstrate their ability to meet the goal and actively work toward it.

Eugene Wang stated that SemiDrive's goal is to make its chips 10% to 20% cheaper than foreign competitors. Following the opening of an office in Japan last year, the company is seeking to establish an office in Germany this year to strengthen local business development and technical support.

Analyst Liu Jiansen (sound translation) from market research firm Canalys said: "Cost-effectiveness and a strong local supply chain give Chinese intelligent cockpit SoC suppliers an advantage in cooperating with international automakers, especially in emerging markets such as Southeast Asia, the Middle East, and Latin America." However, he added that Chinese automotive chip producers still need to work hard to develop systems that meet overseas consumer demands and comply with stricter data security regulations set by European policymakers.

This article is an exclusive contribution by Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7516738718959551015/

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