- Nio's Shenji unit and its partner Axera are pitching the new M97 chip to automakers.
- The M97 chip, boasting over 700 TOPS of computing power to rival Horizon Robotics' Journey J6P, is slated for a third-quarter release.
Nio Inc's chip business is reportedly approaching automakers including Leapmotor and Geely Auto following the successful tape-out of a new smart driving chip.
Nio subsidiary GeniTech Co Ltd (Shenji) co-developed the M97 chip with local chipmaker Axera Semiconductor and following its successful tape-out, the two are actively pitching the product to potential clients such as Leapmotor and Geely, local media outlet 36kr reported Wednesday.
The M97 chip delivers computing power exceeding 700 tera operations per second (TOPS), benchmarking against Horizon Robotics' 560-TOPS Journey J6P, and is scheduled for release in the third quarter, the report said, citing previous disclosures by Axera.
After Nio spun off its chip operations into the independent subsidiary Shenji last year, the unit formed a joint venture with Axera and OmniVision Integrated Circuits. This joint venture will handle shipments of the M97 chip to other automakers, the report noted.
Furthermore, to meet varying automaker demands, Shenji and Axera are planning a lower-end chip codenamed 9031e to compete with Horizon Robotics' 128-TOPS J6M chip.
Nio unveiled its in-house developed Shenji NX9031 smart driving chip in December 2023. All Nio-branded models have since transitioned from Nvidia chips to this in-house silicon.
On February 26, Nio announced that Shenji secured 2.257 billion yuan ($330 million) in its maiden funding round, bringing the unit's valuation to 8.27 billion yuan.
Shenji primarily oversees Nio's smart driving chip operations. Since the NX9031 entered production in 2024, cumulative shipments had exceeded 150,000 units, Nio said at the time.
The partnership model between Shenji and Axera is described by industry insiders as somewhat complex, representing neither a straightforward intellectual property purchase nor direct procurement of original chips, according to 36kr.
Engineering teams from both sides collaborated to develop a customized new chip based on Shenji's core modules and architecture. Nio generated hundreds of millions of yuan in revenue through this technology licensing agreement, the report said.
Automakers such as Leapmotor are currently seeking cost-effective, high-computing-power domestic chips to replace expensive alternatives from Nvidia.
While Horizon Robotics' J6P chip offers substantial computing power, it was required to be sold bundled with the company's proprietary algorithms until late last year.
The bundling restricts the autonomy of automakers like Leapmotor in developing assisted driving technologies, prompting hesitation among some companies considering the J6P, according to 36kr.
This dynamic has created a highly attractive, albeit brief, market window for the joint venture product from Nio and Axera, 36kr noted.
Axera has offered competitive pricing for the chip, drawing interest from automakers including Leapmotor and Geely, the report said, citing a person close to Axera.
($1 = 6.8754 yuan)
