China Urges EV Makers to Buy Local Chips as US Clash Deepens
- Directive could hurt Nvidia, NXP and other EV chip suppliers
- Order is a response to US efforts to curb Chinese chip tech
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The Chinese government has quietly asked electric-vehicle makers from BYD Co. to Geely Automobile Holdings Ltd. to sharply increase their purchases from local auto chipmakers, part of a campaign to reduce reliance on Western imports and boost China’s domestic semiconductor industry.
The Ministry of Industry and Information Technology asked carmakers this year to expand their buying of homegrown components to accelerate the adoption of Chinese chips, according to people familiar with the matter. The country’s tech overseer previously set an informal target for automakers to source a fifth their chips locally by 2025, but has grown dissatisfied with the pace of progress, the people said.