Core Viewpoint - GAC Group issued an official statement denying rumors that Gree Electric would replace half of its automotive chips, clarifying that the discussions between the two companies focused on collaborative development in the "smart ecosystem" of "people, vehicles, and homes" [2] Group 1: Company Collaboration - The rumors originated from a high-level meeting on January 15, where GAC Group's chairman introduced the Hyper GT model, emphasizing its 1004 chips with independent Chinese intellectual property [2] - Gree Electric has been involved in the chip sector since 2015, with a team of nearly 1,000 people and over 60% being technical staff, achieving cumulative sales of over 300 million chips by 2025 [4] - Gree's silicon carbide (SiC) chip business is accelerating, with a factory capable of producing 240,000 six-inch SiC wafers annually, and plans to launch SiC power devices for various markets by 2026 [4] Group 2: Investment and Product Development - In 2025, GAC Capital completed an investment in Chongqing Pingwei Industrial Co., which focuses on chip design and has established deep cooperation with GAC Group across its core brands [5] - The GAC Hyper GT model, featuring 100% domestically designed chips, successfully rolled off the production line in November 2025, marking a significant breakthrough in chip localization [5] - GAC Group launched 12 automotive-grade chips in April 2025, developed in collaboration with various companies, covering critical areas such as power management and safety [6] Group 3: Ecosystem Development - GAC Group initiated the "Automotive Chip Application Ecosystem Co-construction Plan" to enhance collaboration and innovation across the industry, ensuring supply chain stability and promoting technological self-reliance in the automotive sector [7]

Core Viewpoint - The article discusses China's push for automotive chip localization amid increasing US-China tech competition, aiming for 100% self-developed chips by 2027 [1][3]. Group 1: Government Initiatives and Industry Response - The Chinese government, through the Ministry of Industry and Information Technology (MIIT), is leading the initiative for automotive chip localization, with a target to increase the domestic chip usage rate from 25% in 2024 to 100% by 2027 [1]. - Major Chinese automotive brands, such as Geely and BYD, have expressed willingness to prioritize the use of domestic chips, reflecting a strong commitment to this initiative [1][2]. - Despite the lack of a mandatory requirement for 100% localization, the automotive industry is actively collaborating with domestic wafer manufacturers like SMIC to explore the feasibility of domestic alternatives [1][2]. Group 2: Challenges and Strategic Adjustments - The automotive chip localization faces significant challenges, particularly in the autonomous driving sector, where there is still heavy reliance on US suppliers like Nvidia and Qualcomm [1]. - Chinese automotive manufacturers are adopting flexible strategies by using consumer-grade chips for non-core functions, which reduces costs and shortens testing and certification times to 6-9 months, compared to several years for European manufacturers [2]. - Chinese chip companies, such as SemiDrive, are beginning to expand into international markets, indicating a new phase for Chinese chip manufacturers [2]. Group 3: Market Dynamics and Future Outlook - The global demand for automotive chips is surging, making automotive chip manufacturing a crucial strategic direction for China's semiconductor industry [3]. - The rapid expansion of China's mature process nodes is creating price pressure in markets for microcontrollers and analog chips, although the overall self-sufficiency rate in semiconductors remains low, with only 17.5% of domestic demand expected to be met by 2025 [2][3]. - The shift towards automotive chip localization is not only a part of national technology strategy but also signifies a fundamental change in the global automotive supply chain, potentially altering the competitive landscape in the automotive market [3].