Chinese EV maker NIO bets on in-house chips to cut reliance on Nvidia

William Li, CEO of Chinese EV maker NIO, speaks to journalists next to the company’s newly presented ES9 model electric SUV at the Beijing International Automotive Exhibition (Auto China), in Beijing, China, April 24, 2026. REUTERS/Maxim Shemetov · Reuters Reuters Fri, 24 April 2026 at 9:27 am GMT-4 1 min read

BEIJING, April 24 (Reuters) - NIO is betting that in-house chip development will sharpen its ‌technological edge and improve profitability, Chief ‌Executive William Li said on Friday, as the Chinese premium ​EV brand pushes to reduce reliance on suppliers such as Nvidia.

Li said NIO developed its own silicon so its chips could better match ‌the company's algorithms ⁠and sensor layout, particularly for AI functions such as advanced driver-assistance.

He told ⁠Reuters in an interview that Nvidia's automotive chips have "very high gross margin," and that by ​making its ​own chips NIO could ​eventually lift its ‌overall profit, despite higher upfront research-and-development costs.

Nio has spun off its chip unit, Shenji, into an independent company, which Li said is open to supplying chips to external customers.

Li said NIO's ‌nanometer-scale automotive-grade chips and ​whole-vehicle operating system would be ​central to its ​long-term global competitiveness.

The rise of China's ‌electric vehicle makers presents ​a "significant opportunity" ​to redefine the high-end and luxury car market, Li added, opening doors for NIO ​to become a ‌global premium marque.

(Reporting by Ju-min Park, ​Zhang Yan and Qiaoyi Li; Editing by ​David Dolan, Kirsten Donovan)

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Source: “AOL Money”