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Chinese Auto Start-Ups Turn to U.S. Chip Giant Nvidia Amidst Country's EV Boom

There’s an EV boom in China, and Tesla seems to have got a whiff of the looming success. U.S. chip giant Nvidia is also riding the Chinese EV boom after several Chinese electric automakers began using their chipsets to power their electric car systems.
Nvidia Chipset 6 photos
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Analysts are forecasting strong growth in the Chinese EV market in 2022. To catch up to industry leaders Tesla, which designs its chips, Chinese electric vehicle manufacturers use Nvidia chips to increase their production, aiming to catch up to the American automaker.

Despite facing PR issues, Tesla achieved a new record selling 70,847 Made-in-China Model 3/Model Y in December 2021. The American EV giant has also set up a giga-factory in Shanghai, China.

Nvidia is ripping huge benefits from the intensifying competition between Chinese EV makers.

Chinese auto start-ups like Nio and Xpeng have used the Nvidia chip ‘Drive Origin’ in their latest releases. Baidu, which debuted an auto unit last year called Jidu, said they are making plans to use an Nvidia chip in their next release. CNBC reported. Polestar, a brand name under Chinese top auto leader Geely also uses the Nvidia Chip.

With its chipset and accompanying software platform, Nvidia promises fully autonomous driving.

Chinese electric automotive companies are not developing fully autonomous vehicles. Instead, they are putting out ADAS (Advanced Driver-Assistance Systems). ADAS lets automobiles perform partly autonomously with features such as lane-keeping and lane switching.

Tesla uses the familiar Autopilot feature, with Xpeng’s equivalent system being the XPilot.

These features might feel mundane, but they are the main difference between high-level EVs along with range and quick charging. Many EV model brands compete in price ranges where having the ADAS feature is critical from a client expectation perspective. Early adopters of electric vehicles are likely early technology adopters and more consider technology features.

 
 
 
 
 

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