Nio is considering bringing in strategic investors for its chip-related business, according to a report from Chinese outlet LatePost, as the Chinese electric vehicle (EV) maker seeks to trim operating costs and advance toward profitability.
The company’s chip team, currently functioning as an internal business unit, is expected to spin off into an independent entity, LatePost reported, citing multiple sources and internal documents. While the company will reportedly retain control of the new entity, it may sell a minority stake to industrial or strategic investors.
When approached by LatePost, a Nio representative described the information as speculative. However, several industry insiders said the move aligns with Nio’s broader strategy to manage costs while leveraging the market’s growing recognition of its in-house semiconductor capabilities.
One possibility under consideration is the creation of an employee shareholding platform alongside outside investors and Nio, effectively completing a partial spin-off. Another scenario involves Nio maintaining ownership of its internal chip R&D team while bringing in outside capital purely for funding purposes.
The initiative comes as Nio’s chip division gains traction following the mass production and rollout of its proprietary smart driving chip, the Shenji NX9031. First unveiled in December 2023, the chip began appearing in production models such as the ET9, which started deliveries in March. Nio says the chip delivers the equivalent computing power of four Nvidia Orin-X chips.
To support this expansion, a new company — Anhui Shengji Technology Co Ltd — was registered on June 17 in Hefei, where Nio operates two vehicle plants. The new entity is reportedly linked to Nio’s chip efforts and lists Nio vice president Bai Jian as its legal representative. It has a registered capital of RMB 10 million ($1.39 million), with a business scope that includes chip design and sales.
Nio launched its in-house chip program in 2021. In addition to the NX9031, the company developed the Yangjian NX6031 chip in September 2023, a LiDAR control chip that reduces power consumption by 50% and latency by 30%, according to company claims.
With the chip business gaining market credibility, the potential investor infusion could help Nio meet its goal of reaching profitability by the fourth quarter of 2025. The switch from Nvidia Orin-X chips to its own NX9031 chips could save Nio around RMB 10,000 ($1,390) per vehicle. In 2024 alone, Nio had spent over $300 million on Nvidia chips.
