Chinese electric car manufacturers opted to develop their own chips. He already plans to sell them to others.
In 2024, Nio advertisement the world’s first 5nm chip for autonomous driving, being an important step towards technological independence from a Chinese manufacturer of such caliber. A year and a half after its announcement, the company is now beginning the external marketing of that chip, according to they count from Latepost. In this way, Nio is on the eve of transforming one of its most expensive investments into a potential source of income. Just like point The electric vehicle maker has already begun providing technology licenses to an automotive chip company. A multimillion-dollar project that seeks profitability. The development of Shenji NX9031 It has involved an investment of billions of yuan. William Li (Li Bin), CEO of Nio, revealed that the R&D expenditure on this chip was equivalent to the cost of building 1,000 battery exchange stations, which would place the investment above 140 million dollars. The project, started in 2021, has involved more than 600 professionals covering front and back design, verification and testing. What makes this chip special. Made with automotive-grade 5-nanometer technology, the Shenji NX9031 promises approximately four times the computing power of Nvidia’s Orin-X. Zhang Danyu, head of Nio’s chip division, pointed out in May that in some of their specifications they even surpass industry-standard chips and that their mass production began several months before Nvidia’s latest smart driving chip, the Thor-U. It is currently integrated into models such as the ET9, ES6 2025 and EC6. How much does a technology license cost?. According to share From Latepost, the value of these license agreements varies significantly depending on the type of authorization. An individual intellectual property license could be worth several million dollars, while a technical authorization at the system-on-chip (SoC) level could reach hundreds of millions of dollars. A new source of income. That the Nio chip begins to be marketed externally comes at a great time for the company, especially now that the manufacturer faces pressure significant from investors and has promised to become profitable in the fourth quarter. The company has intensified its efforts this year to reduce expenses and explore new sources of income. In March, Li Bin already advertisement publicly at the China EV 100 Forum that Nio chips and operating systems would be open to the industry. “If they want to buy the best chips, they can contact Nio,” he said then. What it means for the future of Nio. According to Li Bin, the chip provides a cost optimization of approximately 10,000 yuan ($1,400) per vehicle in the brand’s own models. Now, with the external license, Nio not only recovers part of its investment, but also positions itself as a technology provider for other manufacturers in the automotive sector. In Xataka | The longest straight road in the world is a mental challenge: 240 km without curves, in the middle of the desert and with truck traffic