Nio said its semiconductor subsidiary GeniTech Co Ltd, also known as Shenji, has secured 2.257 billion yuan ($330 million) in its first external funding round, confirming earlier media reports.
Under the agreement, Chinese investors will subscribe to newly issued shares in the chip unit, Nio said in a statement. After the transaction, a Nio subsidiary will retain a controlling 62.7% stake, allowing the company to continue consolidating Shenji’s financial results.
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The investors will hold a combined 27.3% stake, implying a post-investment valuation of about 8.27 billion yuan ($1.1 billion). The remaining 10% equity will be reserved for employee incentive plans.
Shenji oversees Nio’s in-house smart driving chip development. The company said shipments of its NX9031 processor, which entered mass production in 2024, have exceeded 150,000 units. The chip is used in advanced driver-assistance systems across Nio’s vehicle lineup.
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Nio said the funding will support development of next-generation high-performance chips for autonomous driving as well as processors for other applications. The unit also plans to expand into emerging areas such as robotics and artificial intelligence systems.
While the English-language statement did not name investors, the Chinese version said participants include state-backed funds and private capital groups such as Hefei State-owned Investment, Hefei Haiheng, IDG, China Fortune-Tech Capital and Hua Capital.
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The move reflects Nio’s efforts to balance heavy research spending with profitability targets amid intense competition in China’s electric vehicle market. Founder and Chief Executive William Li previously said the company has invested billions of yuan in chip development, aiming to reduce reliance on suppliers such as Nvidia.
Nio also indicated that Shenji may seek external customers beyond the parent company, positioning itself as a broader provider of automotive chips and intelligent hardware solutions.
