In a recent international conference in Shenzhen, the Chinese government said semiconductor companies and carmakers should strengthen collaboration on making automotive semiconductors domestically. Car companies also plan to invest jointly in the segment to raise self-sufficiency in semiconductors.
According to Nikkei and some Chinese media reports, the 2023 Automotive Semiconductor Ecosystem Summit and Global Automotive Electronics Expo were held on September 2th6 and 27th. China's Ministry of Industry and Information Technology (MIIT), local government officials in Shenzhen, carmakers, tier-1 suppliers and automotive-grade chip manufacturers all joined the event.
Yang Xudong, deputy director of the electronic information department at MIIT, said China's semiconductor industry should grow its production capacity and form strategies to facilitate cooperation with automakers.
He said China has expanded its car chip portfolio. The government will guide companies to enhance technology development and capacity, building capabilities for testing and producing automotive-grade products.
The meeting focused on improving China's ability to manufacture automotive semiconductors locally. GAC Aion said further collaboration between semiconductor makers and parts suppliers is required to increase the number of China-made semiconductors.
The number of semiconductors used in an EV is twice that in an internal combustion engine vehicle. Self-driving technology needs even more semiconductors, between 1,300 and 1,500.
An alliance regarding automotive electronics investment was established during the event. Members include many investment arms of Dongfeng Motor, SAIC, Geely, Xiaomi, Nio and other automotive industry players. Semiconductor R&D and manufacturing require significant funds. The companies' joint investment will help diversify risks.
As the tension between the semiconductor industries of China and the US continues, the conference in Shenzhen concentrates on the development of China's automotive industry. However, US-based Qualcomm also participated in the event, promoting its car chip solutions. The company emphasized its ability to realize 5nm architecture and experiences of supporting 100 Chinese car models, aiming to expand its business in China.
China is trying to set up a comprehensive automotive semiconductor supply chain by enhancing local R&D and manufacturing efforts and gradually banning the use of chips made in Europe, the US and Japan.
Statistics from China-based semiconductor research firms showed that the country saw the automotive semiconductor market reach CNY158.3 billion (US$21.7 billion) in 2022. About 7% represented the China-made semiconductors.
