China’s Autonomous Vehicle Dreams Crushed by US Chip Dependency

Abstract

China’s autonomous vehicle dreams has been crushed by US chip dependency. The vehicle will be joining the competition of Tesla, Nio, and XPeng. China, however, is becoming more and more dependent on chips designed by US companies Nvidia, Qualcomm, and Intel. McKinsey has a predicted forecast that by 2040 self-driving cars will compose of 40% of new car sales in China with a total revenue in the trillions. Competing companies with Nvidia and Qualcomm, which have designed and sold the chip hardware have built 16% market share. The US group has at least 18 different Chinese companies as utilizing the chips as a dominant part of their autonomous driving.