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Li Auto spins out its chip unit

Li Auto has carved out its in-house chip team into a new Shanghai company to build Mach M100 automotive AI processors.

Image: iXBT

Li Auto has spun off its in-house chip development unit into a separate company as the Chinese automaker pushes deeper into semiconductor design.

The new company, Xinchuang Zhihe (Shanghai) Technology Co., Ltd., was registered on July 13, 2026 with registered capital of 100,000 yuan. It is wholly owned by Li Auto.

According to the report, the new entity will develop Li Auto’s own automotive processors with AI capabilities. It will be responsible for the full development cycle of the Mach M100 chip series, including architecture design, IP block development, compiler creation, manufacturing, and chip validation for use in vehicles.

The move mirrors an earlier step by Nio, which also separated its automotive chip business into a standalone subsidiary, Anhui Shenji Technology.

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Li Auto, also referred to as Li Xiang or Lixiang, is a Chinese premium automaker founded in 2015. The company focuses on smart electric vehicles and extended-range hybrids.

Dan Kowalski

Frontier Editor

Dan is our resident futurist, covering electric mobility, space exploration, and the smart home. He's interested in atoms just as much as bits. Whether it's a new battery chemistry, a reusable rocket, or a protocol that finally makes IoT devices talk to each other, Dan breaks down the engineering that pushes humanity forward.

via iXBT

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