GUANGZHOU, China – Chinese electric vehicle maker Xpeng Motors is trying to manufacture its own semiconductors for autonomous driving to stay ahead of the competition, a top company executive told CNBC.
The comments come after technology news website 36Kr reported that Xpeng had assembled a small team to develop semiconductors.
Xinzhou Wu, vice president of Xpeng autonomous driving, said the company is studying various technologies, including autonomous driving cards.
“Well, I can’t say too much about it … the competition in the Chinese market is fierce … so we’re looking at all the options. What are the best ways to maintain our competitive edge? So far we’re doing a lot well on software, ”Wu told CNBC on Wednesday.
“But to move forward we are looking at all possible options: how to stay … winning this competition,”
When asked if this includes exploring internal chipsets as well, Wu said, “That’s one of the directions, yes.”
Wu gave no further details.
Xpeng launched a new electric sedan called the P5 on Wednesday. The vehicle is equipped with Lidar technology and / or Light and distance detection, which uses lasers to map the surroundings of the car.
This is key to enabling some of the integrated P5 autonomous driving functions.
Currently, the P5 uses Nvidia chips for autonomous driving and Qualcomm for its digital cab in the car.
Xpeng Motors launches the P5 sedan at an event in Guangzhou, China, on April 14, 2021. The P5 is Xpeng’s third production model and features so-called Lidar technology.
Arjun Kharpal | CNBC
Designing its own semiconductors could give Xpeng more control over the integration between hardware and software.
The company has focused on developing its own technology as a way to differentiate itself from rivals in the full Chinese electric vehicle market. Xpeng not only competes with traditional carmakers and emerging companies, but a growing number of technology companies like Baidu and Xiaomi have also jumped into the fight.
Wu claimed that the P5’s hardware and software and “the usability of the general functions is much more advanced” than its competitors, which would give the company an “advantage.”
Chinese technology companies have increasingly focused on developing their own semiconductors. Baidu last month raised money for its chip business and Xiaomi introduced a new camera chipset on its latest flagship smartphone.