BYD launched the Xuanji A3 automotive-grade self-developed chip with 4nm process and 700 TOPS computing power. BYD's chip R&D team exceeds 7,000 people, with five wafer manufacturing plants including China's largest 12-inch automotive-grade wafer fab.
Xuanji A3: A Milestone in BYD's Chip Strategy
On May 28, 2026, BYD Chairman Wang Chuanfu announced the Xuanji A3 automotive-grade chip. The chip uses a 4nm process with approximately 700 TOPS per chip. 1 TOPS means one trillion operations per second; 700 TOPS represents extremely strong parallel computing capability.
BYD's chip ambitions are not new. In 2002, BYD established a chip team that evolved into BYD Semiconductor. Today, BYD's chip R&D team exceeds 7,000 people, with five wafer manufacturing plants, including China's largest 12-inch automotive-grade wafer fab.
Self-Developed Chips Become Industry Trend
BYD is not alone. Multiple Chinese NEV makers have pursued self-developed chips:
| Automaker | Chip Name | Process | Computing Power | Production |
|---|---|---|---|---|
| BYD | Xuanji A3 | 4nm | 700 TOPS | 2026 (mass production) |
| XPeng | Turing | — | — | July 2025 (first vehicle) |
| NIO | Shenji | — | — | March 2025 (official) |
| Li Auto | Mach 100 | — | — | Recent (new SUV) |
The core motivation is cost reduction. NIO Chairman Li Bin publicly stated that NIO spent over $300 million on NVIDIA chips in 2024. Self-developed chips significantly reduce costs. NIO CFO Qu Yu said self-developed chips bring approximately 10,000 yuan per vehicle cost optimization.
Deep Logic of Technology Synergy
For automakers strong in intelligent driving, self-developed chips offer deeper value:
- Algorithm synergy: Co-development of proprietary algorithms and chips improves computing efficiency
- Differentiation: Standard supplier solutions vs. customized chips targeting proprietary AI models
- Supply chain security: Reduced dependence on external suppliers, enhanced resilience
A new forces automaker founder who chose not to develop chips argued that 1 million units minimum is needed for economic viability. BYD clearly meets this threshold: over 4.6 million NEV sales in 2025, over 1.02 million in first four months of 2026.
Implications for Overseas Buyers
BYD's chip success means stronger autonomous control and cost advantages for its intelligent driving systems. For overseas buyers, this signals continuous improvement in smart cockpit and assisted driving experiences, with potentially more competitive pricing. Chip autonomy is also a key pillar of BYD's globalization strategy. Follow EX1000.COM for latest updates on BYD and Chinese automaker chip developments.
