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Beijing pushes to use China-made chips in its EVs

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By illuminem briefings

· 2 min read


illuminem summarizes for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:

🗞️ Driving the news: China is accelerating efforts to integrate domestically produced chips into its electric vehicles (EVs), aiming to reduce reliance on international suppliers like Texas Instruments and Infineon
Currently, around 15% of chips in Chinese cars are locally made, a figure expected to rise significantly
The U.S. has responded by opening a trade probe into China's self-sufficiency push in the $80 billion automotive semiconductor market

🔭 The context: China's EV market leads the world, driven by brands like BYD and NIO. Chips are critical for EV functionalities, including battery management and autonomous driving
This initiative aligns with Beijing's broader goal to dominate key technologies and reduce reliance on Western imports

🌍 Why it matters for the planet: By controlling its chip supply chain, China seeks to ensure a more sustainable and secure EV ecosystem
However, escalating trade tensions could hinder global collaboration on green technologies critical for combating climate change

⏭️ What's next: If China's domestic chip usage grows, global EV chip manufacturers may lose market share
The U.S. trade probe could lead to restrictions, complicating China's self-sufficiency plans and impacting global EV supply chains

💬 One quote: “China’s move to boost local chip production represents both an opportunity and a challenge for global industry players,” - an unnamed industry expert

📈 One stat: Currently, 15% of chips in Chinese EVs are domestically produced.

Click for more news covering the latest on mobility tech

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