The Chip Revolution Behind the Auto Show: From “Supporting Role” to “Leading Role”Under the spotlight of the 2025 Shanghai International Auto Show, the competition for range in new energy vehicles and smart driving technology remains the focus, but the true “invisible protagonist” in the exhibition hall is the small automotive-grade chips. From SanDisk’s global debut of automotive-grade UFS 4.1 storage solutions to domestically developed 5-nanometer smart cockpit chips, and breakthroughs in smart driving computing power by local companies like Horizon Robotics and Black Sesame Technologies, the scene of domestic automotive-grade chip booths being “snatched up” by car manufacturers reflects the qualitative change in China’s automotive industry from “building shells” to “building brains”. A high-end electric vehicle requires over 1,300 chips, and the past reliance on imports for 90% of these critical components is quietly dissolving at this auto show.
Domestic Breakthrough Amidst Sino-U.S. Competition: From “Substitution” to “Innovation”The stringent restrictions on AI chip exports by the U.S. and the EU’s anti-subsidy tariffs have made Chinese automotive companies acutely aware of the life-and-death importance of “supply chain independence”. In 2024, Huawei’s Ascend chips, with doubled computing power, will be equipped in the Wuling M9, while BYD’s IGBT localization rate surpasses 50%, and Horizon’s Journey 6 series aids Li Auto’s L6 in achieving advanced smart driving… Behind these achievements are the dual forces of policy “blood transfusion” and market pressure. The National Big Fund’s third phase allocates hundreds of billions to automotive-grade chips, and Shanghai offers a subsidy of 5,000 yuan for each vehicle purchased with domestic chips, prompting car manufacturers to shift from “cautious trial use” to “active embrace”; domestic chips are transitioning from “optional” to “essential”.
The Global Trend of New Energy Vehicles: China Defines the “Game Rules”As Tesla’s silicon carbide technology advantage is being chased by Chinese companies with super-fast charging (400 kilometers in 5 minutes) and dual-core power batteries (fireproof against shooting and crushing), and as Bosch and Infineon’s market shares are being eroded by Horizon Robotics and Chipone Technology, the balance of power in the global automotive industry is shifting. At the Shanghai Auto Show, dealers from South Africa and Spain marveled that “China has transformed from a follower to a leader”; the underlying logic of this shift is the extreme demand for storage, computing power, and communication chips in the era of Software-Defined Vehicles (SDV). SanDisk’s 1TB automotive-grade storage reduces OTA update time by 60%, and domestic 5-nanometer chips turn the cockpit into a “mobile smart terminal”; these technologies not only reshape user experience but also position China as a new standard setter for smart vehicles.
Conclusion: A No-Retreat OvertakingThe spring of automotive-grade chips is not only a victory of technological breakthrough but also a microcosm of great power competition. From “using an abacus to build an atomic bomb” to “using 28-nanometer chips to build smart cars”, every “counterattack” of the Chinese automotive industry is filled with difficulties but also nurtures opportunities. As one engineer said, “Entrusting one’s lifeline to others has never been the survival philosophy of the Chinese people.” This auto show may very well be the prologue to the “Chinese era” of the global automotive industry.
【References】[1] Speedy Counterattack! China Sanctions 7 U.S. Companies; New Actual Controller of Wanye Enterprises, Zhu Shihui: Devoted to the Semiconductor Industry (Lao Yao Bar)[2] Insights from the Shanghai Auto Show on the Future of Smart Driving: SanDisk Sets New Standards for Automotive-Grade Storage (Tech Vision, Phoenix Technology)[3] Power Batteries, Super Fast Charging, Intelligent “Brains”… How “Fired Up” is China’s Automotive Innovation Engine? (CCTV, CRI)[4] Concerns Under the Prosperity of Domestic Electric Vehicles; Domestic Chips Snatched by Car Manufacturers (36Kr, Yoojia)[5] Domestic Automotive Chip Achievement Exhibition Area Unveiled; Shanghai Accelerates Automotive Chip Research (iJiwei, Sina Auto)
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