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Technology
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Large Cap
Market Cap £36.22bn
Enterprise Value £39.44bn
Revenue £8.63bn
Position in Universe 34th / 1049

ECARX to launch 7nm auto chip with Arm China, to be built by TSMC -CEO

Tue 30th March, 2021 2:36am
By Yilei Sun and Tony Munroe
    BEIJING, March 30 (Reuters) - ECARX, an auto tech startup
backed by Geely's chairman and Baidu, plans to supply products
with 7 nanometer (nm) chip as early as next year through its
joint venture with Arm China, its chief executive told Reuters.
    ECARX, which was founded by its CEO Shen Ziyu and Geely
 GEELY.UL  Chairman Li Shufu in 2016, is focusing on
technologies used in car chips, high-definition maps and smart
vehicles.
    Shen, a former General Motors Co  GM.N  executive, told
Reuters in an interview that ECARX's joint venture with Arm
China, Siengine, will start supplying the new chip products from
the end of next year or early 2023. Taiwan Semiconductor
Manufacturing Co Ltd  2330.TW  will manufacture the chips, Shen
said.
    ECARX customers include brands owned or related to Geely
group such as Lotus, Lynk & Co, Polestar, Smart and Volvo. ECARX
is also talking with other automakers, Shen said.
    Chips with 7nm process technology have relatively higher
capabilities of processing for smart car technologies. Other
companies working on 7nm or more advanced chips include Qualcomm
Inc  QCOM.O . 
    As cars get smarter, chips have become a key component in
products from sensors to control units, with internationally
established companies including NXP Semiconductors  NXPI.O ,
Renesas  6723.T  and Infineon  IFXGn.DE  facing more competition
from Chinese rivals.
    Siengine's products will use Arm's chip design intellectual
property and ECARX will make them suitable for smart car
software, Shen said.
    In the past few months, ECARX raised around $400 million
from investors including Baidu Inc  BIDU.O  and U.S. firm
Susquehanna International Group, which also invested in
TikTok-owner ByteDance.
    Shen said ECARX, which has already supplied 2.5 million
vehicles, will make content from different companies such as
Alibaba  9988.HK , Baidu  BIDU.O , ByteDance and Tencent
 0700.HK  available to car users.
    ECARX is seting up an office in Sweden, plans to expand its
partnership in Malaysia and boost its workforce to around 2,000
this year from 1,700.  
    ECARX has internally discussed about possibilities of
initial public offering but has currently no plans, Shen said.
ECARX has said its valuation exceeds $2 billion.

 (Reporting by Yilei Sun and Tony Munroe; Editing by Lincoln
Feast.)
 ((Y.Sun@thomsonreuters.com; +86 10 66271262; Reuters Messaging:
y.sun.thomsonreuters.com@reuters.net))
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