Domestic Chips: The Rise of Geely's "Dragon Eagle One," the "Core" Hope for Chinese Automobiles

Tech 2024-09-03 20:34:35 Source: Network

Domestic Chips: The Rise of Geely's "Dragon Eagle One," the "Core" Hope for Chinese AutomobilesThe shadow of the "chip shortage" lingers, a sword of Damocles hanging over the heads of domestic automakers, leaving them feeling choked. We once naively thought that focusing on building good cars would be enough to secure our place in the market

Domestic Chips: The Rise of Geely's "Dragon Eagle One," the "Core" Hope for Chinese Automobiles

The shadow of the "chip shortage" lingers, a sword of Damocles hanging over the heads of domestic automakers, leaving them feeling choked. We once naively thought that focusing on building good cars would be enough to secure our place in the market. However, the sudden chip shortage in 2020 poured cold water on all automakers: Without "Chinese chips," domestic cars will always be at the mercy of others!

"Automotive chips" quickly became a hot topic, a hurdle the Chinese automotive industry had to overcome. In this silent "core" war, Geely, a seasoned player from Zhejiang province, took the lead, firing the first shot in the quest for independent "chipmaking"!

On November 28, 2022, Geely Automobile Group's subsidiary, Xinqing Technology, officially unveiled its independently developed "Dragon Eagle One" chip in Wuhan Economic and Technological Development Zone. This automotive-grade chip, built on a 7-nanometer process, not only filled the gap in China's high-end automotive chip market but also marked a significant step for Geely on its "chipmaking" journey.

Geely's Determination and Vision in "Chipmaking"

Geely's "chipmaking" journey is not a knee-jerk reaction or blind imitation. It stems from a deep understanding of future automotive industry trends and the urgent need for control over core technologies. Looking back at the past few years, the global automotive industry has been in constant flux. Waves of electrification, intelligence, and connectivity have swept through, transforming cars from simple vehicles into "mobile intelligent terminals." In this "disruptive innovation" in the automotive industry, chips, as the "brain" of cars, are crucial. Automated driving, intelligent cockpits, vehicle networking, and cloud services all rely on high-performance, reliable chips.

Domestic Chips: The Rise of Geely

The reality is harsh. For a long time, the global automotive chip market has been dominated by international giants like NXP, Infineon, and Renesas. While the Chinese automotive industry has been developing rapidly, it has been stuck in an awkward position of "chip deficiency" in the automotive chip sector, with a severe dependence on imports for high-end chips.

Data shows that in 2021, the Chinese automotive chip market reached a size of approximately $11 billion, but the self-sufficiency rate was less than 5%. This means that over 90% of automotive chips need to be imported. This excessive reliance on foreign countries not only severely restricts the development of the Chinese automotive industry but also puts Chinese automakers in a passive position when facing international competition.

The Alarm Bell of the "Chip Shortage"

The "chip shortage" of 2020 exacerbated this conflict. Affected by multiple factors like the pandemic, natural disasters, and geopolitical tensions, the global automotive chip supply chain experienced a severe shock. Automotive chip prices skyrocketed, leading to a "chip scarcity."

In this "chip battle," Chinese automakers, lacking independent and controllable chip technology, became one of the most affected groups. Many automakers were forced to halt or reduce production due to the chip shortage, even delaying new car deliveries, resulting in significant losses. Geely Automobile once faced a delay in deliveries of some models due to a shortage of ESP (Electronic Stability Control) chips. This incident made Geely realize that mastering core technologies, especially chip technology, had become a major strategic issue affecting the survival of the company.

Domestic Chips: The Rise of Geely

A "Know Shame and Then Be Courageous" "Chipmaking" Journey

As the saying goes, "Know shame and then be courageous," Geely decided to break through the foreign technology blockade and embark on a path of independent "chipmaking."

In 2018, Li Shufu, Chairman of Geely Holding Group, explicitly stated in an internal meeting, "The automotive industry revolution has begun. We need to actively embrace change, master core technologies, and build our own 'core competitiveness.'" That same year, Geely Holding Group established a subsidiary dedicated to chip research and development - Xinqing Technology. They recruited top chip R&D talent from around the world and embarked on their journey toward independent "chipmaking."

Chip development is not something that can be achieved overnight or simply by throwing money at it. The chip industry has high technical barriers, long R&D cycles, and large investment scales. It requires companies to have long-term vision, strong technical capabilities, and continuous investment.

Faced with these challenges, Geely chose to face them head-on. They understood that the journey toward independent "chipmaking," though thorny, was essential for the Chinese automotive industry to move towards high-end and intelligent vehicles.

Domestic Chips: The Rise of Geely

To build a powerful chip R&D team, Geely spared no expense, recruiting top talent from around the globe. Currently, Xinqing Technology has assembled a research and development team of over 1,000 people, many of whom are senior experts from international chip giants like Intel, Qualcomm, and NVIDIA.

In terms of research and development investment, Geely has been extremely generous. It is reported that Geely invests over 10 billion yuan annually in chip research and development.

The Success of "Dragon Eagle One" Tape-Out, Breaking the Foreign Monopoly

Hard work pays off. After years of dedicated research and development, Geely finally reaped the rewards.

In December 2021, Xinqing Technology's first 7-nanometer automotive-grade chip, "Dragon Eagle One," successfully completed tape-out, marking a crucial step on Geely's journey toward independent "chipmaking." The emergence of "Dragon Eagle One" not only broke the monopoly of foreign chip giants in the high-end automotive chip market but also brought new hope to the Chinese automotive industry. This chip integrates multiple core modules, including high-performance CPU, GPU, NPU, and ISP, meeting the needs of L2+ level autonomous driving, reaching international leading standards.

Domestic Chips: The Rise of Geely

More importantly, the successful tape-out of "Dragon Eagle One" proves that Chinese companies have the ability and confidence to develop world-leading automotive chips, break through foreign technology barriers, and achieve independent control over automotive chips.

A "Chipmaking" Journey with a Long Way to Go

Geely also recognizes that the journey towards independent "chipmaking" has just begun, and the success of "Dragon Eagle One" is merely a good start. In the future, Geely will continue to increase investments in chip research and development, continuously improve its chip product line, and build a more complete automotive chip ecosystem.

Geely's "chipmaking" story is a microcosm of the development of the Chinese automotive industry. In the face of the greatest changes in a century, the Chinese automotive industry is at a critical juncture of overcoming hurdles. "Chips," as one of the core technologies of the automotive industry, are undeniably important. If the Chinese automotive industry wants to stand undefeated in future competition, it must master the independent control of chip technology.

While Geely's "chipmaking" journey is full of challenges, we have every reason to believe that with the wisdom and hard work of Chinese automotive people, the Chinese automotive industry will surely break through the "chip" bottleneck and achieve the leap from "automotive giant" to "automotive powerhouse"!

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