Through investment in a number of automotive chipmakers, Xiaomi has made clear its goal to lay hands on the coveted car chip supplies
Shanghai AI Micron, an integrated circuit startup, recently added an industrial fund affiliate of tech giant Xiaomi to its list of shareholders, marking the latter’s new move to obtain the chipmaking technology key to its car-making endeavor.
Meanwhile, the startup’s registered capital of the chipmaker increased from about CNY1.627 million (257,844) to about CNY1.8441 million, suggesting that the firm has recently raised funds from investors.
After the equity change, Hubei Xiaomi Changjiang Industrial Fund partnership (limited partnership) became the sixth-largest shareholder of AI Micron, owing 5.73% of the company.
The acquisition of a minority stake in the company aligns with Xiaomi’s plan to manufacturer intelligent electric cars (EV), a goal outlined in an official announcement as early as March 30, 2021. Lei Jun, founder and CEO of Xiaomi, served as the CEO of the new EV business.
Facing shortages in core components like chips, Xiaomi began to make early moves to build its own industrial chains. Automotive chip companies have thus become Xiaomi's investment targets.
Founded in August 2017, AI Micron is a manufacturer of SERDES chips for in-car high-definition data transmission. The company’s official website shows that its product application scenarios include streaming rearview mirror, driving recorder, central control/navigation IVI, smart cockpit, autonomous driving/automated parking, among others.
Liu Wenjun, founder, chairman and general manager of the company, worked at Philips, Huawei and in the Silicon Valley at several points of his career. With many years of experience as a specialist in video and image-processing chips, he founded AI Micron in 2017.
At present, Xiaomi has invested in close to 10 car chip companies, including Flagchip, Black Sesame Technologies, Motor-Comm, Wuhan Silicon Integrated. Their chips cover applications ranging from control to intelligent driving, from in-car communication to mixed signal.
Xiaomi's investments in this field are second only to those in self-driving cars. Market observers pointed out that this has underscored Xiaomi's emphasis on control of car chip supply chain.
They added that for new energy vehicle brands, as long as their driving ranges remain similar, autonomous driving and smart cockpit will be the two major factors determining consumers' decisions in addition to appearance.