China's in-car Ethernet chip supplier EtlChip closes Pre-A+ funding round

Shanghai (Gasgoo)- Recently, Nanjing EtlChip Microelectronics Technology Co., Ltd. ("EtlChip"), a Chinese in-vehicle Ethernet chip supplier, successfully completed its Pre-A+ round of financing, according to a post on the WeChat account of CASSTAR, the lead investor of this round.

EtlChip has stated that this funding will be primarily used to support the development and delivery of in-vehicle Ethernet chips. Previously, EtlChip had completed two rounds of financing in 2023, including an angel round and a Pre-A round.

Founded in 2022, EtlChip is one of the few teams in China dedicated to the development of in-vehicle Ethernet chips. With years of experience in Ethernet communications chip technology, EtlChip has developed high-performance, highly reliable, and low-power in-vehicle Ethernet communications chips and solutions.

With the advancement in the intelligent cockpit and autonomous driving fields, the demand for high-speed communications within vehicles is increasing. Due to its high bandwidth, high reliability, and lighter wiring harnesses, in-vehicle Ethernet has become a key technology for meeting these high-speed communications needs. Since BMW first implemented the Ethernet architecture in the BMW 7 Series, the application of in-vehicle Ethernet has gradually become widespread.

Currently, the market for automotive Ethernet chips in China is largely dependent on imports. These chips are primarily categorized into two types: Switch chips and Physical Layer Transceiver (PHY) chips. Domestically, the production focuses on a limited range of low-speed 100 Mbps automotive PHY chips, with automotive Switch chips still lacking local supply.

Zhong Jianfeng, founder of EtlChip, pointed out that only a few teams in China are working on developing automotive PHY chips. EtlChip is among the rare few that develop both automotive PHY and Switch chips, providing comprehensive solutions for automotive Ethernet systems.

Switch chips are complex, large-scale digital ASICs (application-specific integrated circuits) that cannot utilize off-the-shelf IP cores and require the design of numerous custom circuits. By overcoming these technical challenges, EtlChip has developed China’s sole gigabit TSN Ethernet Switch chip, matching the performance of top industry products.

The company said EtlChip's competitive edge lies in its product performance, which matches international standards, and its alignment with OEMs' push for component localization. Moreover, EtlChip's local presence allows for more responsive support to OEMs' R&D needs, facilitating quicker product iterations. For instance, while it might take international chip giants two weeks to respond to an issue, EtlChip can respond within 24 hours.

In terms of product development, EtlChip's industrial Ethernet chips have already entered mass production and delivery, achieving both technological validation and revenue generation. Its automotive Ethernet chips are nearing the end of testing and are about to be delivered for OEM customer trials.