Sunday, May 29, 2022

China has the world’s largest automobile market but sources only 5% of its chips locally

- Advertisement -

In 2021, the Chinese automobile market was hit hard by the ongoing chip shortage issue. Meanwhile, a new report has revealed that while China has the largest automobile market, the domestic market uses only 5% of local chips.

If you are not familiar, the automobile industry across the globe took a drastic hit due to supply chain constraints due to semiconductors. Electric cards and energy vehicles have become more popular but the lack of chips has caused a decline in the market.

681538e1gy1gz7anwrfxaj21900u04da 1024x683 1

As of now, the automobile production and sales of new energy vehicles market in China is the leader in the industry. However, the domestic market’s self-sufficiency rate for auto chips is under 10%.


As per a report from MyDrivers, this localization rate is under 5%. Despite having the largest automobile market, especially for NEVs, China only uses around 5% of domestically manufactured chips.

Intel H670, B660, and H610 chipset images appear online

In the auto industry, the MCU chips are the most in short supply, notably, this chip is also the one that is basically monopolized by foreign chip makers. The only exception to this is BYD, apart from this brand, there are no other Chinese automakers that manufacture these chips.

As per an industry insider, the core chipsets for the automobile industry are basically in the ‘hands of foreign’ manufacturers. The source also added that the Chinese market has a lot of money but too little patience amongst investors. Producing these chips requires a lot of money and a minimum of 5-10 years of time to get some returns.

- Advertisement -

Also read:

- Advertisement -



Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Related Articles

More To Consider

Stay Connected

Boat Lifestyle [CPS] IN

Hot Topics


Latest Articles



Adblocker detected! Please consider reading this notice.

We've detected that you are using AdBlock Plus or some other adblocking software which is preventing the page from fully loading.

We don't have any banner, Flash, animation, obnoxious sound, or popup ad. We do not implement these annoying types of ads!

We need money to operate the site, and almost all of it comes from our online advertising.

Please add to your ad blocking whitelist or disable your adblocking software.