After Nvidia Pauses China Outlook, Top Chinese Automakers Race To Ditch Foreign Chips, Aim For 100% Domestic Supply By 2027: Report
Chinese automakers are rapidly moving to eliminate foreign semiconductors from their vehicles by 2027, with brands like SAIC Motor and BYD aiming for 100% domestic chip production by 2026. This initiative, supported by China's Ministry of Industry and Information Technology, comes after Nvidia announced it would exclude China from future revenue guidance due to U.S. export controls. The target marks a significant increase from a previous goal of 25% domestic chip usage this year, as companies seek technological self-reliance amid growing restrictions on foreign components.
Chinese automakers are accelerating plans to eliminate foreign semiconductors from their vehicles by 2027, with at least two brands preparing mass production of cars using 100% domestic chips by 2026.
What Happened: Major Chinese automakers, including SAIC Motor, BYD BYDDF BYDDY, Geely Automobile Holdings GELYF GELYY, Great Wall Motor Co GWLLY GWLLF, Li Auto LI and Changan are developing models with entirely homemade semiconductors, reported Nikkei Asia, citing sources.
China’s Ministry of Industry and Information Technology is shepherding the initiative, regularly requiring self-assessments of domestic chip adoption rates.
The push comes as Nvidia Corp. NVDA announced it will exclude China from future revenue guidance after U.S. export controls cost the chipmaker $2.5 billion in first-quarter revenue. CEO Jensen Huang told CNN the company won’t count on China sales, saying, “if it happens, then it will be a great bonus.”
Automakers mentioned in the report did not immediately respond to Benzinga's request for comment.
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Why It Matters: The 2027 target represents a dramatic acceleration from Beijing’s previous goal of 25% domestic chip usage this year. While not mandatory, the framework incentivizes companies to demonstrate progress toward technological self-reliance.
Chinese electric vehicle makers currently rely heavily on foreign chips, particularly Nvidia’s AI processors for autonomous driving and Qualcomm Inc.’s QCOM solutions for smart cockpits. Progressive U.S. restrictions have raised concerns about component access.
GAC Group is collaborating with domestic contract manufacturers Semiconductor Manufacturing International Corp. and CanSemi Technology to review supply chains and verify local alternatives, according to the report.
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