Warren Buffett-backed BYD is allegedly in talks with Daimler to supply the latter with chips the company produces and uses in its own electric cars.
Citing sources with knowledge of the matter, Sina Tech says that talks between BYD and Daimler over so-called insulated gate bipolar transistors (IGBTs) are at an advanced stage.
IGBTs are semiconductors that are used primarily as electronic switches in electric vehicles to reduce power consumption and increase reliability.
There's no guarantee a deal will be reached, and BYD is also in talks with other automakers, sources said.
BYD said in March that it planned to start supplying a suite of electric vehicle components to competitors in a bid to diversify its revenue stream.
While automakers around the world are committed to an electrified future, only a handful of tech companies have the technology to make IGBTs, including Infineon and Mitsubishi Electric. BYD is the only Chinese automaker to independently produce IGBTs.