China automakers keen to reach self-sufficiency for automotive ICs

Nuying Huang, Taipei; Adam Hwang, DIGITIMES Asia 0

Credit: AFP

To cope with the US ban on exports of advanced semiconductors to China, Chinese automakers are making efforts to promote local production of automotive ICs, according to industry sources.

China-based BYD Semiconductor has added investment to expand production of automotive ICs, while Chinese automakers have reportedly asked foreign IC design houses, including Taiwan-based ones, to have car-use ICs made by foundries in China, the sources noted.

As China is a large market, international semiconductor suppliers have made adjustments to cope with the US ban. For example, Nvidia's A100 and H100 were among items prohibited from being exported to China in September 2022 but Nvidia in November unveiled A800, a downgraded version of A100 to circumvent the ban.

Suppliers believe that the US-imposed prohibition will push China to speed up development of self-manufacturing capability for car- and industrial-use semiconductors. However, there is a long way for China-based semiconductor makers to attain the status of international IDMs or first-tier suppliers.