Source: Financial Times (paywall)
BYD and Nio are moving beyond assembly to in-house chip design, reducing dependence on Qualcomm and Nvidia. Export controls forced the shift, but falling semiconductor design costs and commoditization of AI inference tasks made it viable. Automotive AI—autonomous driving, cabin systems—is now table-stakes competition. Control over silicon gives Chinese manufacturers pricing power, faster iteration cycles, and insulation from U.S. sanctions. The economic threat extends beyond Western chipmakers to their vertically integrated software-to-silicon advantage in the vehicle market.