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.
China’s Ministry of Industry and Information Technology is shepherding the initiative, regularly requiring self-assessments of domestic chip adoption rates.
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 (NASDAQ: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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