NIO Sets Stage For Chip Arm Spin-Off, Eyes External Clients: Report

NIO Inc. NIO is reportedly moving forward with plans to spin off its semiconductor division into a separate company, a step that could enable the EV maker to supply chips to other automotive firms, CnEVPost reports, citing reports from local media.

The new unit will become an independent entity as part of the company’s broader strategy to diversify operations and build a standalone business model in the chip sector.

A recent spin-off report indicates the new chip-focused venture will now accept orders from external clients.

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The move reflects NIO’s ambition to tap into the growing demand for automotive semiconductors and position itself as a competitive supplier.

The newly established company, called Anhui Shengji Technology Co. Ltd., was formally registered on June 17, the report further adds.

Bai Jian, Vice President at NIO, is listed as the legal representative. With a registered capital of RMB 10 million (approximately $1.39 million), the firm will focus on chip design, distribution, and related services, according to filings from the Chinese corporate database Tianyancha.

NIO reportedly intends to maintain control of the new venture while bringing in select strategic investors, per CnEV Post.

The chip division, which currently functions as an internal unit, will now transition to an independent structure with the autonomy to collaborate with outside clients.

The spin-off news arrives as NIO accelerates its expansion into European markets.

The automaker is adopting a distributor-led approach to enter Portugal, Greece, Cyprus, and Bulgaria while deepening its existing presence in Denmark. These efforts are part of a strategy to scale its global reach and boost brand visibility.

Reflecting a more favorable outlook, Goldman Sachs analyst Tina Hou recently upgraded NIO’s stock from Sell to Neutral.

Meanwhile, the company has emphasized its commitment to supplier relations by speeding up payment cycles, a move it says will help ensure consistent product quality and user satisfaction.

Price Action: NIO shares are trading higher by 0.58% to $3.440 premarket at last check Friday.

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