Nio’s semiconductor unit is approaching automakers including Leapmotor and Geely Auto to promote its newly developed smart driving chip, following a successful tape-out, according to local media reports.
The chip, known as M97, was co-developed by Nio subsidiary GeniTech Co Ltd (Shenji) and Axera Semiconductor. It delivers computing performance exceeding 700 tera operations per second (TOPS), positioning it against competing products such as Horizon Robotics’ Journey J6P, which offers 560 TOPS.
The M97 is expected to be released in the third quarter, the report said, citing previous disclosures from Axera.
Shenji was spun off as an independent unit by Nio last year and subsequently formed a joint venture with Axera and OmniVision Integrated Circuits. The venture is responsible for supplying the chip to external automakers, marking a shift from internal use toward broader commercialization.
To address different market segments, Shenji and Axera are also developing a lower-cost chip, codenamed 9031e, aimed at competing with Horizon Robotics’ J6M processor.
Nio has been advancing its in-house semiconductor strategy since unveiling the Shenji NX9031 chip in December 2023. The company has since transitioned all Nio-branded vehicles from Nvidia-based systems to its proprietary chips. As of early 2026, cumulative shipments of the NX9031 have exceeded 150,000 units.
The expansion into external supply follows Shenji’s first funding round in February, which raised 2.257 billion yuan ($330 million) and valued the unit at 8.27 billion yuan.
Industry observers say the collaboration model between Shenji and Axera differs from traditional chip supply arrangements, combining technology licensing and joint development. According to the report, Nio has generated hundreds of millions of yuan in revenue through licensing agreements tied to its chip architecture.
The push comes as automakers seek cost-effective domestic alternatives to high-end chips from Nvidia. While competitors such as Horizon Robotics offer powerful solutions, earlier requirements to bundle hardware with proprietary software limited flexibility for some automakers developing their own assisted driving systems.
This has created an opportunity for new entrants offering high-performance chips with more flexible integration options, particularly in China’s rapidly evolving autonomous driving market.
The reported discussions with Leapmotor and Geely highlight growing demand among automakers for scalable and competitively priced computing platforms to support advanced driver assistance and autonomous driving features.