Home NewsStock Market News GM bids farewell to Nvidia, another car factory embarks on the road of self-development of chips | Anue Juheng-US Stock Radar

GM bids farewell to Nvidia, another car factory embarks on the road of self-development of chips | Anue Juheng-US Stock Radar

by WOOWinvest
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GM bids farewell to Nvidia, another car factory embarks on the road of self-development of chips | Anue Juheng-US Stock Radar

General Motors (GM-US) executives told the media a few days ago that its autonomous driving division Cruise has developed chips for self-driving cars, which are expected to be deployed in its own Origin driverless electric vehicles by 2025. Tesla (TSLA-US) abandoned professional chip manufacturers a few years ago, and instead invested in chip research and development by itself, setting a precedent in the industry.

In China, BYD, Geely, Weilai, Ideal, Xiaopeng, Leapao and Xiaomi, etc. of electric car manufacturers have also invested in the research and development of automotive chips since 2020.

It is understood that the recent shortage of automotive chips, among which MCU, IGBT and other types of supply shortages are the most serious; but the technical threshold of such chips is not high, and Chinese manufacturers only need two or three years to be able to mass produce.

What GM and China’s “Wei Xiaoli” (Nio, Xiaopeng and Ideal) are trying to master are high-end chips that are directly related to car intelligence. In this field, NVIDIA (NVDA-US), Qualcomm (QCOM-US) and Mobileye have always been good at; on the other hand, China Huawei, Xinchi, Horizon and Black Sesame are also chasing after them.

Carl Jenkins, head of Cruise’s hardware division, told Reuters that they spent a lot of money two years ago to buy GPUs from a major manufacturer, but the number was too small for the two sides to negotiate, so they were trying to control their own destiny. Although Jenkins did not specify which company it was, according to past cooperation records, it is speculated that he was referring to the leading GPU manufacturer Huida.

Jenkins said that they have developed four chips so far, namely the “Horta” for the central processing unit, the “Dune” for processing sensor data, and a chip for radar purposes, while the other will be developed in the future. public.

Cruise CEO Kyle Vogt revealed that the self-developed self-driving chip will help Origin reach the “Sweet Spot” of cost in 2025, when the model will be mass-produced.

General Motors CEO Mary Barra said in a virtual speech at the Consumer Electronics Show (CES) in Las Vegas earlier this year that they will deliver the first self-driving car for personal use in 2025.

Ann Gui, the head of Cruise’s chip business, said that they have invested in Horta research and development two years ago, and will cooperate with a chip manufacturer in Asia to mass-produce chips developed and designed in-house.

Gartner predicts that, driven by the shortage of chips and the electrification and automation of vehicles, half of the top ten automakers will design their own chips in 2025 to strengthen their own product blueprints and supply chain control.

However, in addition to cost considerations, the reason why Chinese carmakers invest in chip research and development is also related to international political wrestling. For example, Huida’s A100 chip was recently banned by the US government from being sold to Huawei.

At present, Chinese car manufacturers such as Weilai, Xiaopeng, Ideal and BYD are strengthening the layout of chip development; In addition, the AD1000 high-end self-driving chip developed by Geely and ARM (ARM) China’s joint venture is also expected to be put into the market in 2024. .

However, investing in the research and development of high-end automotive chips by yourself is expensive. According to Semiengingeering data, the high-end self-driving chips currently required by automakers are mostly manufactured using a 7-nanometer process, and the development cost of a 7-nanometer chip is as high as US$297 million; For example, it took Tesla more than 3 years that year. It remains to be seen whether Chinese automakers can stand out in the future.

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