The latest news is that relevant departments have quietly requested Chinese electric vehicle manufacturers, including BYD and Geely, to significantly increase the use of domestically manufactured automotive chips. This move aims to reduce dependence on imported chips on the one hand, and on the other hand, it is also conducive to promoting the development and progress of China's domestic semiconductor chip industry.

Bloomberg recently quoted anonymous sources as saying that the Chinese Ministry of Industry and Information Technology has requested Chinese electric vehicle companies to increase their purchases of domestic components and accelerate the adoption of Chinese chips this year.

In recent years, new energy host manufacturers represented by BYD, NIO, Ideal, and Xiaopeng have suffered from supply chain instability caused by chip shortages, industrial chain stratification, and trade frictions between China and the United States, while their shipments have grown rapidly. Therefore, in order to maintain the stability of the upstream supply chain, domestic car manufacturers have strengthened their resource reserves in the semiconductor field and vigorously promoted the localization replacement of automotive grade chips.

Driven by the increasing import of domestic chips by domestic host manufacturers, Chinese automotive chip manufacturers have ushered in a historic development opportunity. According to the latest analysis by Xinba Ge, more than 60 semiconductor manufacturers currently listed are involved in the automotive semiconductor business (click to jump to details).

At present, China has become a major country in new energy vehicles, ranking first in the world in production and sales for 9 consecutive years. However, in the field of automotive semiconductors, due to late layout, high technological barriers, and long import cycles, China's self-sufficiency rate in this field is still less than 10%. In the future, driven by independent new energy vehicle brands such as BYD, NIO, Ideal, Xiaopeng, and Xiaomi, it is expected that China's automotive semiconductor manufacturers will usher in good development opportunities.

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This is reported by Top Components, a leading supplier of electronic components in the semiconductor industry. They are committed to providing customers around the world with the most necessary, outdated, licensed, and hard-to-find parts.

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Name: John Chen

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