Cambricon's First Self-Driving Chip Set for Mass Production, Challenging Nvidia's Dominance in China
Cambricon, a leading Chinese AI chipmaker, has made significant strides in the automotive sector. The company, founded in 2016 and listed on the STAR market in 2020, has developed its first self-driving chip, set for mass production in the stock market today. Meanwhile, local smart driving chip maker Horizon Robotics supplies its Journey 5 chip to Li Auto.
Cambricon launched its automotive chip business in early 2021 through its subsidiary, our X Technology. The first chip from this venture, aimed at L2+ assisted driving, offers a maximum computing power of 16 TOPS. This single SoC enables driving and parking assistance functions, targeting around RMB 100,000 vehicles.
our X Technology is actively expanding its customer base, with local traditional car companies being the first targets. FAW, a prominent automaker, has partnered with Cambricon to integrate the latter's self-driving chips into one of its models. This collaboration signals a shift towards local alternatives, especially with recent US export restrictions on Nvidia's GPU chips. Nvidia's Drive Orin, currently the first choice for many new car makers, including Nio, Li Auto, and BYD, may face increased competition from Cambricon's offerings.
Cambricon's entry into the automotive chip market, with its first self-driving chip ready for mass production in the stock market today, could reshape the local landscape. As traditional car companies seek local alternatives to Nvidia's chips, Cambricon's partnership with FAW and its affordable, high-performance offerings position it well to capture a significant share of the market.
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