- Several Chinese investors will inject RMB 2.257 billion ($330 million) into Nio's chip business, valuing the operation at about RMB 8.27 billion.
- Following the transaction, a Nio subsidiary will retain a 62.7% controlling stake in Shenji.
Nio Inc (NYSE: NIO, HKG: 9866) confirmed its chip unit has secured its first round of funding, validating earlier media reports.
Nio and its subsidiary GeniTech Co Ltd (Shenji) have finalized agreements with Chinese investors who will subscribe to newly issued shares of Shenji in cash, according to a Thursday statement.
The investors will inject RMB 2.257 billion ($330 million) in cash into the business.
Shenji primarily oversees Nio's smart driving chip operations. Since the Shenji NX9031 chip entered mass production in 2024, cumulative shipments have exceeded 150,000 units, according to Nio.
Following the transaction, a Nio subsidiary will retain a 62.7% controlling stake in Shenji, and Nio Inc will continue to consolidate its financial statements.
The investors will collectively acquire a 27.3% equity stake in Shenji. Based on this, the post-investment valuation of the chip division is about RMB 8.27 billion.
The remaining 10% equity will be reserved for the subsidiary's employee stock incentive plan.
Nio's English statement did not disclose the names of specific investors. In a Chinese statement, it said that multiple industrial capital entities and leading industry institutions participated in the investment, including Hefei State-owned Investment, Hefei Haiheng, IDG, China Fortune-Tech Capital, and Hua Capital.
Earlier today, multiple media reports indicated that Hefei's local industrial funds, Nio Capital, IDG, and a publicly listed semiconductor company participated in this funding round.
This formal announcement highlights Nio's strategic adjustment to balance substantial R&D expenditures with its 2026 profitability target amid intense market competition.
Since 2021, Nio has invested heavily in developing high-end smart driving chips, aiming to rival and replace Nvidia's comparable products.
Nio founder, chairman, and CEO William Li previously disclosed that the chip's R&D costs reached billions of yuan — equivalent to building 1,500 battery swap stations.
The introduction of external capital signals Nio's attempt to seek financial returns from this capital-intensive business.
In November 2025, LatePost reported that Nio commenced external supply of its Shenji NX9031 technology, granting technical licenses to an automotive chip company.
($1 = RMB 6.8406)
