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China Faces Challenges in Building Independent Car Chip Supply Chain Amid EV Boom

share-iconWednesday, January 01 comment-icon3 weeks ago 9 views
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China Faces Challenges in Building Independent Car Chip Supply Chain Amid EV Boom

Credited from: SCMP

  • China's electric vehicle (EV) production is driving up demand for automotive chips, yet domestic firms rely on foreign suppliers for over 90% of their chip needs.
  • Industry officials state that the self-sufficiency rate for automotive chips in China is under 10%, with dependency as high as 95% for certain chip types.
  • In response to the growing EV market, the Chinese government has urged carmakers to increase domestic chip sourcing up to 25% by 2025.
  • EVs require significantly more chips than traditional cars, with estimates of 1,600 chips needed per EV, compared to 600 to 700 for internal combustion vehicles.
  • Despite motions towards self-sufficiency, China’s automotive industry continues to face bottlenecks in advanced chip production and remains heavily influenced by global chip manufacturers.

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China Automotive Chips Electric vehicles Semiconductors Supply chain Dependence Imports
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Gloria Terra

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