Nio Spins Off Chip Unit Shenji to Reduce Reliance on Nvidia

Gate News message, April 25 — Chinese EV maker Nio announced on April 24 that it has spun off its chip division, Shenji, into an independent company to reduce reliance on suppliers such as Nvidia and improve profit margins.

Shenji's first chip, the NX9031, uses a 5-nanometer automotive-grade process and delivers performance equivalent to four Nvidia Drive Orin X chips, according to Nio CEO William Li. The silicon is designed to match Nio's algorithms and sensor layout for AI-powered features including advanced driver assistance systems.

Shenji has been opened to external customers for chip sales, and Nio views self-developed automotive chips and its vehicle operating system as core components of long-term competitiveness. The spinoff was funded by a 2.3 billion yuan (US$330 million) investment round from outside investors. Li noted that the effort involves higher upfront research and development costs.