Core Viewpoint - The automotive industry is shifting towards localization in response to global market dynamics, with increasing competitiveness among domestic chip manufacturers in China [1][15]. Group 1: Collaboration and Competition - Chery Automobile and Horizon Robotics have expanded their collaboration, with plans for mass production of the Horizon SuperDrive (HSD) system in Chery's vehicles starting as early as September 2023 [5][4]. - The partnership aims to integrate Horizon's chip solutions across Chery's entire product line, including both fuel and new energy vehicles, while still utilizing NVIDIA's solutions for certain models [5][6]. - Domestic chip companies like Horizon and Black Sesame are gradually gaining market share from established players like NVIDIA, which has historically dominated the smart driving chip market in China [5][6]. Group 2: Market Dynamics and Localization - The automotive industry in China is experiencing a significant shift towards smart technology, with local manufacturers increasingly adopting domestic chip solutions to reduce reliance on foreign suppliers [6][9]. - Major suppliers like Aptiv are also working towards localizing their chip supply chains, although they acknowledge that achieving full localization remains a challenge [9][14]. - The market share of Qualcomm in the smart cockpit chip sector has increased significantly, from 65.4% to 77.0% within a year, indicating a strong competitive landscape [10]. Group 3: Strategic Responses to Geopolitical Challenges - U.S. chip companies are facing challenges in the Chinese market due to geopolitical tensions and trade disputes, prompting them to consider local production strategies [13][15]. - Companies like Texas Instruments are exploring local manufacturing options in China to mitigate risks associated with supply chain disruptions and tariffs [14][15]. - The automotive supply chain is expected to adapt to these challenges, focusing on cost adjustments rather than severe shortages, as companies enhance their local capabilities [14].