With the development trends of automotive intelligence and electrification, automotive chips have become an important battleground in the global semiconductor industry. Recently, two domestic mergers have attracted widespread attention—Zhongying Electronics’ controlling shareholder is set to change to Zhinen Industrial Electronics, and Xinbang Intelligent has acquired the equity of Yindi Semiconductor; internationally, Arm has launched the Zena computing subsystem to accelerate the development of automotive AI chips, while Samsung has partnered with Infineon and NXP to jointly develop the next generation of automotive chips. These dynamics not only reflect the transformation of the domestic automotive chip industry but also mirror the increasingly fierce competition in the global automotive chip market.
01
Capital Competition: A Surge in Mergers in the Automotive Chip Sector
● Zhinen Industrial Electronics Acquires 14.2% of Zhongying Electronics
On the evening of June 9, Zhongying Electronics disclosed that Shanghai Zhinen Industrial Electronics Co., Ltd. (hereinafter referred to as “Zhinen Industrial”) will become the company’s controlling shareholder, and the actual controller of the company will change to no actual controller.
Zhongying Electronics stated that recently, its controlling shareholder Weilang International Group Co., Ltd. (hereinafter referred to as “Weilang International”) and shareholder Win Channel Ltd. (hereinafter referred to as “Win Channel”) signed a “Share Transfer Agreement” with Zhinen Industrial, whereby Weilang International and Win Channel plan to transfer a total of 14.2% of the company’s shares to Zhinen Industrial through the agreement.
Public information shows that Zhongying Electronics was established in 1994 and has accumulated substantial experience in industrial control MCUs, lithium battery management chips, and AMOLED display driver chips, establishing solid partnerships with many leading brands. However, recent financial reports indicate that Zhongying Electronics is facing challenges in its development amid fierce market competition. In 2024, Zhongying Electronics’ operating revenue grew by 3.32% to 1.343 billion yuan, but its net profit attributable to the parent company fell by 28.01% year-on-year to 134 million yuan. Entering 2025, the revenue growth in the first quarter was merely 0.05%.
Against this backdrop, Zhinen Industrial’s entry brings new hope to Zhongying Electronics. Zhinen Industrial is funded by the Shanghai government through the Shanghai Technology Entrepreneurship Investment (Group) Co., Ltd. guiding fund, in collaboration with Wuyuefeng Technology Innovation and the Xuzhou municipal government, focusing on the layout and industrial ecosystem construction in the industrial and automotive chip fields.
Zhinen Industrial has a strong technical accumulation in power devices and intelligent driving, which is expected to synergize with Zhongying Electronics’ existing automotive-grade MCUs and industrial control chips, accelerating product iteration and upgrades. With government resources backing it, Zhongying Electronics can expect advantages in policy support, wafer factory capacity allocation, and increased R&D investment in key areas.
●Xinbang Intelligent Acquires Equity in Yindi Semiconductor
Coincidentally, before Zhongying Electronics changed hands, another acquisition in the automotive chip sector also drew attention, namely Xinbang Intelligent’s acquisition of Yindi Semiconductor. This is not only a strategic layout between individual enterprises but also reflects the deep transformation occurring in the automotive chip market, as domestic companies seek to enhance their competitiveness through various means to secure a more favorable position in the global automotive chip supply chain.
On the evening of May 19, Xinbang Intelligent announced its plan to acquire the controlling stake in Wuxi Yindi Semiconductor Technology Co., Ltd. (referred to as “Yindi Semiconductor”) through the issuance of shares, convertible bonds, and cash payments to Wuxi Linying Enterprise Management Consulting Partnership (Limited Partnership) and other transaction parties. At the same time, Xinbang Intelligent also plans to issue shares to no more than 35 specific investors to raise matching funds. This transaction is expected to constitute a related party transaction and a major asset restructuring, but it does not constitute a restructuring listing.
Yindi Semiconductor, as a leading domestic supplier of automotive-grade analog and mixed-signal chips and solutions, focuses on the R&D, design, and sales of automotive-grade chips. Since its establishment in 2017, it has achieved significant results in domestic substitution and technological innovation in automotive chips, becoming one of the few integrated circuit design companies in China capable of large-scale production of automotive-grade chips. On June 11, Yindi Semiconductor announced that its automotive control chips had cumulatively shipped over 300 million units.
In 2024, Yindi Semiconductor’s operating revenue approached 600 million yuan, with automotive-grade chip revenue accounting for over 90%. The net profit attributable to the parent company, excluding share payment expenses, was 46.4135 million yuan. Its products have been mass-produced in hundreds of vehicle models and have fully entered the supply chains of most domestic joint venture and domestic automotive brands, such as BYD, SAIC Group, and FAW Group, and have also been successfully applied in well-known foreign automotive brands such as Volkswagen and Hyundai Kia.
Xinbang Intelligent’s acquisition of Yindi Semiconductor is a key step towards entering the automotive chip sector, which is large in scale, fast in growth, and has a low domestic substitution rate, aiming to achieve industrial upgrades.
02
Global Race: A Wave of Technological Innovation in Automotive Chips
The vigorous development of the domestic market is just a microcosm of the global automotive chip industry’s transformation. Looking internationally, a race centered on technological innovation has already begun. With the deepening trends of automotive intelligence and electrification, global chip giants are increasing their R&D investments to seize the high ground of next-generation automotive chip technology, with new products and solutions continuously emerging.
At the Shanghai Auto Show in April 2025, several automotive chips made a significant debut. Qualcomm showcased the 8775 platform, which uses a CPU+NPU+GPU heterogeneous computing architecture, supporting 4K multi-screen interaction, high-speed NOA navigation, and real-time control of vehicle domains, with a system bandwidth of 154GB/s. MediaTek released the Dimensity automotive flagship cockpit platform C-X1, based on advanced 3nm process technology, using Arm v9.2-A architecture, integrating NVIDIA Blackwell GPU and deep learning accelerators, constructing a flexible computing architecture with dual AI engines to provide powerful AI computing capabilities to meet future smart cockpit demands. Intel launched the second-generation Intel AI-enhanced Software Defined Vehicle (SDV) SoC during the Shanghai Auto Show, being the first in the automotive industry to adopt a multi-node chip architecture, allowing automotive manufacturers to customize computing, graphics, and AI functions according to their needs, reducing development costs and shortening time to market.
On June 4, semiconductor giant Arm officially launched its new automotive computing subsystem, Zena CSS, aimed at accelerating the development of the next generation of AI chips, particularly for automotive design applications. Zena CSS integrates 16 Cortex-A720AE cores based on the Arm v9 architecture and Cortex-R82AE real-time microcontroller cores, specifically optimized for the performance of Advanced Driver Assistance Systems (ADAS) and In-Vehicle Infotainment (IVI) applications.
Additionally, Zena CSS supports optional image signal processing capabilities with Mali-C720AE and Mali GPUs, further enhancing the intelligent experience of vehicles. Arm stated that the standardized pre-integrated computing platform of Zena CSS can significantly shorten the development cycle of automotive chips, potentially reducing chip development time by up to 12 months and decreasing the engineering workload for each project by 20%. This innovation will help automotive manufacturers quickly launch new models without compromising safety and energy efficiency, meeting market demands for personalized smart vehicles.
Collaboration between enterprises drives industry development. On June 6, according to South Korean media Sammobile, Samsung has reached a partnership with Infineon and NXP to jointly develop next-generation automotive chip solutions. This collaboration will utilize Samsung’s 5nm process technology, aiming to meet the growing demand for automotive intelligence, especially in advanced driver assistance systems (ADAS) and autonomous driving functions. The focus of this collaboration is on optimizing the cooperative design of memory and processors, enhancing the chip’s security performance and real-time processing capabilities.
03
Conclusion
The integration of Zhongying Electronics and Zhinen Industrial, along with Xinbang Intelligent’s acquisition of Yindi Semiconductor, injects new momentum into industry development; while the technological innovations of global chip giants bring both pressure and direction for reference. In the future, the domestic automotive chip industry must continue to increase R&D investment and gradually enhance its independent innovation capabilities to secure a place in the global automotive chip market.
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