Chinese automakers are rapidly increasing their reliance on locally produced chips, with the latest whitelist encompassing over 2,000 application scenarios—an impressive 34 per cent rise compared to the first whitelist released in April, as reported by the Global Times on Wednesday.
Cui Dongshu, secretary-general of the China Passenger Car Association, highlighted the significance of these figures, noting that they reflect the stable growth of the automotive electronics sector in the world’s largest automobile market.
China’s production of new-energy vehicles (NEVs) has surpassed 10 million units annually, marking it as the first country to reach this milestone. This surge in NEV production is driving heightened demand for automotive chips, prompting Chinese manufacturers to invest heavily in chip development. State broadcaster CCTV noted in November that over 10 carmakers have begun exploring auto chip manufacturing through their own R&D initiatives.
Xiang Ligang, director-general of the Information Consumption Alliance in Beijing, stated that utilising domestically produced automotive chips will enhance safety and ensure a stable supply. Furthermore, large-scale production is expected to lower procurement costs for automakers.
The global auto industry faced significant disruptions from late 2020 to 2022 due to a chip shortage, forcing many manufacturers to revise production schedules due to insufficient semiconductors for essential functions such as infotainment systems and autonomous driving aids.
Xiang emphasised the need for Chinese automakers to enhance their competitiveness through product differentiation, which necessitates greater investment in domestic chip development. Unlike smartphone chips that require advanced manufacturing processes (7-nm or 14-nm), automotive chips are simpler to produce, focusing on functions like energy management and vehicle control.
Earlier this year, the Ministry of Industry and Information Technology (MIIT) announced plans to establish uniform standards for auto chip production, aiming to accelerate R&D in response to rising international competition. The MIIT’s plan includes the introduction of over 30 chip standards by 2025, addressing reliability, electromagnetic compatibility, and operational security to ensure the safe application of automotive chips.
