China's electric car race is becoming more about chip prowess as companies focus on tech

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China's electric car race is becoming more about chip prowess as companies focus on tech
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Price wars aside, Chinese electric car companies are now competing on driver-assist and other tech powered by semiconductors.

"It's hard to point to your product being superior when your competitors use the exact same silicon to power their infotainment and intelligent driving systems," said Tu Le, founder of consulting firm Sino Auto Insights.

"It's hard to point to your product being superior when your competitors use the exact same silicon to power their infotainment and intelligent driving systems," said Tu Le, founder of consulting firm Sino Auto Insights, explaining why EV makers are turning to in-house chips.and Chinese electric car startups to compete on designing their own chips, while traditional automakers will likely still rely on Nvidia and Qualcomm"for the foreseeable future.

By designing their own chips, Chinese automakers can customize features, as well as reduce supply chain risk from geopolitical tensions, Liu said. The 5 nanometers technology is the most advanced one for autos because the 3 nanometer tech is mostly used for smartphone, personal computer and artificial intelligence-related applications, CLSA analyst Jason Tsang, said following the Nio chip announcement.

When asked about the availability of computing power for training driver-assist tech, Xpeng's Gu told reporters Monday that prior to the U.S. restrictions the company had been working with Alibaba Cloud. He claimed that access now probably gives Xpeng the largest cloud computing capacity among all car manufacturers in China.

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