Nio’s sub-brand Onvo is set to introduce the company’s in-house developed Shenji smart driving chip in the updated 2026 L90 electric SUV, marking a further step in its transition away from external suppliers such as Nvidia, according to local media reports.
The 2026 Onvo L90, scheduled for launch on April 21, will feature a significantly upgraded intelligent driving system and, for the first time, offer a LiDAR-equipped variant, Chinese outlet Leiphone reported, citing people familiar with the matter.
The model is expected to be powered by Nio’s Shenji chip, built on a 5-nanometre process. The move would align Onvo more closely with Nio’s core brand, which has already transitioned fully to in-house chips across its lineup.
Eric Yu said earlier on social media platform Weibo that production costs for the updated L90 have increased by around 10,000 yuan ($1,460), driven by rising prices for components such as high-performance memory.
Nio’s first-generation Shenji NX9031 chip delivers computing power exceeding 1,000 TOPS, with cumulative shipments surpassing 150,000 units. However, the chip requires LPDDR5x memory, which has seen persistent price increases, adding cost pressure.
The company is also developing a second Shenji chip, aimed at broader adoption. According to Nio, the new chip—also built on a 5 nm process—offers performance comparable to three Nvidia Orin-X chips while significantly reducing costs. The chip has completed tape-out and is currently entering mass production.
It remains unclear which version of the Shenji chip will be deployed in the L90, with reports suggesting Nio may opt for either the high-performance NX9031 or a more cost-efficient alternative with estimated computing power of around 700 TOPS.
The updated L90 is also expected to debut a new version of Nio’s “World Model,” featuring a unified technical architecture shared with the company’s flagship vehicles, covering both underlying systems and application layers.
Nio’s push toward in-house chip development reflects a broader trend among Chinese automakers seeking greater control over core technologies. Rival Xpeng has also accelerated adoption of proprietary chips, including its Turing AI processor introduced in newer models such as the Mona M03.
As part of its semiconductor strategy, Nio is also exploring commercial opportunities. Its chip unit, Shenji, recently raised more than 2.2 billion yuan in its first funding round, valuing the business at nearly 10 billion yuan. The unit is also reportedly working with Axera to market a jointly developed M97 chip to other automakers.
