During the Smart Electric Vehicle Development High-Level Forum 2026, Qiu Xiaoshen, Founder and Chairperson of Aixin Yuanzhi, shared her views on whether automakers should develop their own chips.
She stated that Aixin Yuanzhi has never positioned itself solely as an automotive chip company. While the automotive sector represents a high-value niche, a chip manufacturer focusing exclusively on car chips would face a limited ceiling. Globally, approximately 90 million vehicles are produced annually; even if all used Aixin Yuanzhi's chips, that would amount to just over 90 million units—a scale insufficient to sustain a chip enterprise's growth. Therefore, Aixin Yuanzhi operates as a platform-based edge computing chip company, with automotive applications being one of its significant segments.
Qiu outlined three distinct business models emerging in the evolution of automotive intelligence. The first is vertical integration. The second involves automakers pursuing in-house chip development, a path some may choose, similar to smartphone maker Apple's approach. Apple's journey in developing its own chips was notably challenging: it spent years on application processors before finally succeeding in creating its own baseband after a long period. However, the vast majority of manufacturers do not adopt this self-development route, as industry specialization exists for good reason.
The third model relies on industry division of labor. Centuries of industrial development have underscored the importance of specialization, as each field has its unique characteristics and growth patterns. While some may opt for vertical integration or full self-development, the long-term trend favors the third approach—leveraging industry collaboration.
Within this framework, Aixin Yuanzhi positions itself as a Tier 2 chip supplier in the automotive ecosystem. By clearly defining this role and maintaining distinct boundaries, cooperation with upstream and downstream partners becomes straightforward, avoiding overstepping. Collaborating closely with algorithm companies and Tier 1 suppliers, Aixin Yuanzhi aims to develop valuable products for OEMs. This approach ensures Tier 1 partners remain open to collaboration, without concerns about Aixin Yuanzhi encroaching on their value.
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