Chinese Government Calls on Automakers To Collaborate on Semiconductors
China To Amplify Domestic Auto Production
Overt Operator
October 03, 2023
Skyline view of Shenzhen, China, photographed in 2021.
In a bid to boost domestic production of automotive semiconductors, the Chinese government has called upon semiconductor companies and carmakers to collaborate closely.
This important announcement was made during the 2023 Automotive Semiconductor Ecosystem Summit and Global Automotive Electronics Expo, held in Shenzhen on September 26 and 27. The event saw the participation of China's Ministry of Industry and Information Technology (MIIT), local government officials, carmakers, tier-1 suppliers, and automotive-grade chip manufacturers.
Yang Xudong, the deputy director of MIIT's electronic information department, emphasized the need for China's semiconductor industry to expand its production capacity and establish strategies for cooperation with automakers. He stressed that the government will guide companies to enhance technology development and capacity, with a specific focus on testing and producing automotive-grade products.
The conference aimed to address one of the key challenges faced by China's automotive industry - the need to manufacture automotive semiconductors locally. GAC Aion, a prominent Chinese car manufacturer, highlighted the importance of increased collaboration between semiconductor makers and parts suppliers to boost the production of China-made semiconductors.
The significance of automotive semiconductors cannot be overstated. Electric vehicles (EVs) require twice as many semiconductors as internal combustion engine vehicles, while self-driving technology demands even more, ranging between 1,300 and 1,500 semiconductors.
In a move that further underscores China's commitment to developing its automotive electronics sector, an alliance was formed during the conference. This alliance includes the investment arms of major automotive industry players such as Dongfeng Motor, SAIC, Geely, Xiaomi, and Nio. The goal of this collaborative effort is to strengthen research and development capabilities and manufacturing prowess in the field of automotive semiconductors.
China's push to boost its automotive semiconductor supply chain comes at a time of global chip shortages, which have severely impacted the automotive industry.
By focusing on domestic production, China aims to reduce its reliance on foreign suppliers and enhance self-sufficiency in this critical sector. This move aligns with the country's broader goal of becoming a global leader in semiconductor manufacturing and technology.
The recent conference in Shenzhen served as a platform for industry stakeholders to come together, exchange ideas, and strategize on how to overcome the challenges faced by the automotive semiconductor supply chain. With increased collaboration between semiconductor companies, carmakers, and tier-1 suppliers, China is well-positioned to strengthen its domestic automotive semiconductor industry and pave the way for a more sustainable and self-reliant future.
China's call for closer collaboration between semiconductor companies and carmakers to build a robust automotive semiconductor supply chain is a significant step towards achieving self-sufficiency in this critical sector.
By expanding production capacity and enhancing technology development, China aims to reduce its reliance on foreign suppliers and emerge as a global leader in automotive semiconductor manufacturing. The recent conference in Shenzhen highlighted the industry's commitment to this cause and set the stage for future collaboration and innovation in the field of automotive semiconductors.