NIO establishes Anhui Shenji Technology with 10 million yuan capital for chip design and AI software development.

NIO establishes Anhui Shenji Technology with 10 million yuan capital for chip design and AI software development.

NIO, a leading electric vehicle (EV) manufacturer, has launched Anhui Shenji Technology, a new subsidiary focused on chip design and AI software development. The subsidiary, based in Hefei, Anhui, was registered on June 17, 2025, with a capital investment of RMB 10 million ($1.39 million) [3].

The new entity, Anhui Shenji Technology Co Ltd, is led by NIO's vice president Bai Jian and is tasked with developing NIO's in-house smart driving chip, Shenji NX9031, and related AI software. The chip, which has been in mass production since December 2023, powers NIO's latest models, including the ET9 and ET5, ET5 Touring, ES6, and EC6 [3].

The establishment of Anhui Shenji Technology marks a strategic move by NIO to become a full-stack provider of smart driving technologies. By controlling both hardware and software, NIO aims to optimize energy efficiency, reduce costs, and enhance the performance of its vehicles [1].

NIO's foray into chip design is part of its broader strategy to achieve profitability in the fourth quarter of 2025. The company aims to reduce the average cost of its vehicles by an estimated RMB 10,000 yuan ($1,390) per vehicle by using its in-house developed chips instead of third-party chips [3].

The launch of Anhui Shenji Technology also signals NIO's intention to attract strategic investors. The company plans to cede a small stake to external investors while retaining control over the chip project entity [3]. This move is expected to help NIO secure additional funding and resources to accelerate its chip development and AI software projects.

NIO's focus on chip design and AI software development positions it to compete more effectively in the rapidly evolving automotive technology landscape. As the demand for smart driving technologies grows, NIO's ability to develop and integrate cutting-edge chips and AI software could provide a significant competitive advantage.

References:
[1] https://www.digitimes.com/news/a20250620VL202/nio-automotive-chips-subsidiary-design-2025.html
[2] https://www.industryleadersmagazine.com/apple-ai-chip-design-revolutionizes-on%E2%80%91device-performance/
[3] https://cnevpost.com/2025/06/18/nio-in-talks-bring-strategic-investors-chip-unit/