(CNBC) US chip giant Nvidia is riding on new successes in China as top EV startups, including Nio and Xpeng, turn to it for their supplies to rival market leader Tesla.
Baidu, another Chinese EV startup, also plans to use the Nvidia chip for its car launch. Geely’s brand Polestar is also eyeing the same chip.
Nvidia is seen to offer an unmatched chipset and accompanying software platform, which is attractive for Chinese EV makers.
Whereas Tesla makes its own chips to power its advanced driver-assistance systems or ADAS, smaller EV startups are turning to Nvidia for their supplies, with the chip maker’s strong roots in China also a key reason for its successes.
Boston Consulting Group managing director at Aakash Arora says ADAS are the key differentiators in the EV sector. The Chinese EV makers are seen to lean towards ADAS rather than fully-autonomous cars, with Nvidia becoming crucial in the task.
Nvidia’s chip supply success comes when China is recording an EV boom, with Tesla selling a record China-made cars in December.
NVDA: NASDAQ is up +0.73% on premarket.
