Overseas uncertainties + domestic policy support, the localization process of automotive chips is expected to accelerate.

Industry media reports that the highly anticipated 21st Shanghai International Automobile Industry Exhibition (2025 Shanghai Auto Show) is expected to grandly open at the National Exhibition and Convention Center (Shanghai) on April 23. As one of the theme forums of the 2025 Shanghai Auto Show, the "2025 Automotive Semiconductor Ecosystem Conference and China Automotive-Grade Chip Technology Roadshow" is scheduled to be held at the National Convention Center from April 25 to 26.

According to the "White Paper on the Commercial Development of Intelligent Driving in China," the scale of China's intelligent connected automotive industry reached 1,108.2 billion yuan in 2024, with a growth rate of 34%. It is projected that the market size will exceed 5 trillion yuan by 2030. With the advancement of electrification, intelligence, and connectivity technologies, the usage, value, and importance of automotive chips are increasingly rising. Guohai Securities points out that, according to Gasgoo Research Institute, the MIIT requires automakers to achieve a localisation rate of 10% for single categories and 20% in total by 2025, while the corresponding rates in 2022 were only 2.5% and 5%, respectively. Driven by policy guidance and the cooperation of automakers and various levels of suppliers, the development of domestic chips has accelerated in recent years: in 2024, some automakers have already met the 2025 localisation targets. It is expected that, with the policy uncertainty of overseas controls and domestic policy support, the localisation process of China's automotive chips will further accelerate.

According to the Caixin Theme Library, among the relevant publicly listed firms:

Vanchip stated that, as the first domestic company to mass-produce L-PAMiD products and 5G automotive-grade RF products, it will actively seize structural opportunities, continuously increase R&D investment in high-end products, and enhance the performance and reliability of core products.

Sinowealth has already sold industrial-grade MCU products on a large scale to downstream customers, and automotive-grade MCUs have seen small-scale applications.