Report: Nio’s Debut Chip Targets Smart Cockpit, Utilizing Advanced 7 nm Process Technology

Nio, a prominent electric vehicle (EV) manufacturer, has disclosed more details about its in-house chip development efforts. The company’s first-generation chips will be based on the 7 nm process and will encompass various functionalities, including a smart cockpit chip and an autonomous driving chip, among others.

Here are the key points from the report:

1. Smart Cockpit and Autonomous Driving Chips: Nio’s first chip will be centered around the smart cockpit and will be produced using the 7 nm process. It’s worth noting that Nio has primarily emphasized its development of an autonomous driving (AD) chip in previous communications.
2. Manufacturing Partner: Samsung will manufacture Nio’s smart cockpit-oriented chip. The head of Nio’s chip development team has experience from Huawei’s chip design arm, HiSilicon.
3. Development Team: Nio’s chip development team is spread across multiple cities in China, including Shanghai, Hefei, Beijing, and Shenzhen. The team comprises individuals with backgrounds from companies like HiSilicon, MediaTek, and Oppo’s Zeku business.
4. Leadership: Nio’s vice president for hardware business, Bai Jian, is responsible for the overall planning and coordination of the chip business, with the head of R&D coming from HiSilicon.
5. Algorithms: Nio’s CEO, William Li, has highlighted the importance of defining the chip in terms of algorithms, which will enhance efficiency and contribute to higher gross margins.
6. Upcoming Chips: Nio’s first-generation in-house chips are set to include a smart cockpit chip, an autonomous driving chip, and other chips like a CMOS image sensor chip. The company is also preparing for the development of a 5 nm chip.
7. Tape-Out: Nio could see two chip tape-outs next year, based on the 7 nm and 5 nm processes. The tape-out of a 7 nm chip is estimated to cost around $30 million, while a 5 nm chip would cost roughly $500 million.
8. Market Impact: Nio’s in-house developed smart cockpit chip, if successfully mass-produced, is expected to feature in a sub-brand model called Alps, to be launched in the second half of the next year. This would provide a non-Qualcomm cockpit chip option in the RMB 200,000 ($27,500) to RMB 300,000 price range.

The move to develop in-house chips aligns with Nio’s ambition to have more control over its EV technology stack and reduce dependence on external suppliers for critical components. This strategy also allows the company to tailor its chip designs to its specific requirements, particularly in the rapidly evolving smart EV industry.