GUANGZHOU, China – Chinese electric car maker Xpeng Motors is looking to make its own semiconductors for autonomous driving to stay ahead of the competition, a company chief executive told CNBC.
The comments come after the technology news site 36Kr reported that Xpeng gathered a small team to develop semiconductors.
Xinzhou Wu, vice president of self-management at Xpeng, said the company is looking at various technologies, including self-driving chips.
“Well, I can’t say much about it … the competition in the Chinese market is fierce … so we’re looking at all the options. What are the best ways to keep our advantage in the competition? So so far we do very well in software, “Wu told CNBC on Wednesday.
“But going forward, we look at all the possible options: how to stay … winning this competition,”
When asked if this also includes exploring internal chipsets, Wu said, “This is one of the directions, yes.”
Wu did not provide further details.
Xpeng launched a new electric sedan called the P5 on Wednesday. The vehicle is equipped with Lidar technology or or light detection and distance, which uses lasers to map the surroundings of the car.
This is essential to enable some of the autonomous driving features of the P5 that are built-in.
The P5 currently uses chips from Nvidia for autonomous driving and Qualcomm for its digital on-board cab.
Xpeng Motors launches the P5 sedan at an event in Guangzhou, China, on April 14, 2021. The P5 is Xpeng’s third production model and features so-called Lidar technology.
Arjun Kharpal | CNBC
Designing its own semiconductors could give Xpeng more control over hardware and software integration.
The company has focused on developing domestic technology as a way to differentiate itself from rivals in China’s crowded electric vehicle market. Not only is Xpeng competing with traditional carmakers and start-ups, but also a growing number of technology companies, such as Baidu and Xiaomi, have also jumped into crisis.
Wu claimed the P5 hardware and software and “the use of general features is much more advanced” than its competitors – and that would give the company an “advantage”.
Chinese technology companies have increasingly focused on developing their own semiconductors. Last month, Baidu raised money for its chip business, and Xiaomi unveiled a new camera chipset on its latest flagship smartphone.