Li Auto has established a new company in Shanghai with a business scope that includes integrated circuit design and related technology services, a move that expands the Chinese electric vehicle maker’s activities in semiconductor development.
Business registration records show that Xinchuang Zhihe (Shanghai) Technology Co., Ltd. was incorporated on July 13 with a registered capital of 100,000 yuan ($14,724). The development was first reported by local media outlet Chedongxi.
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New Entity Focuses on Chip Design
The company is registered in the Shanghai Free Trade Zone and lists its business activities as including technology development, technical services, integrated circuit chip design, integrated circuit services, and chip product sales.
According to registration information, the company’s legal representative is Wang Yang, who serves as Li Auto’s joint company secretary.
Li Auto said Wang joined the company in 2020 as head of capital markets after working in private equity investment and wealth management.
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The automaker has not commented on the purpose of the new company or whether it will eventually operate its semiconductor business independently.
In-House Chip Already in Production
Li Auto introduced its internally developed Mach M100 automotive chip in May.
The company said the chip is manufactured using a 5-nanometer automotive-grade process and delivers 1,280 TOPS of computing performance per processor.
The Mach M100 has entered mass production in the Li L9, Li L8, and Li L6 models. Vehicles equipped with a dual-chip configuration provide a combined computing capability of 2,560 TOPS, according to the company.
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Previously, Li Auto founder, chairman and chief executive officer Li Xiang said the company developed its own chips to support artificial intelligence applications in vehicles rather than simply to demonstrate technological capability.
He said future AI development would depend on the integration of chip architecture, operating systems, AI models, compilers, hardware design and manufacturing technologies.
Part of Broader Industry Trend
If Li Auto eventually transfers its semiconductor operations into the newly established company, it would follow a strategy already adopted by other Chinese electric vehicle manufacturers.
Nio established semiconductor subsidiary GeniTech Co., Ltd., also known as Shenji, in 2025. The company has since completed financing totaling nearly 3 billion yuan and recently showcased automotive and AI chips at the World Artificial Intelligence Conference 2026 in Shanghai.
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Xpeng has also introduced its internally developed Turing automotive chip for use in its vehicle lineup.
Chinese electric vehicle manufacturers have increasingly invested in proprietary semiconductor development as intelligent driving systems and artificial intelligence become more central to vehicle technology.