Mainland China asks domestic automakers to increase use of locally sourced chips in vehicles

The Chinese Ministry of Industry and Information Technology expects domestic automakers to increase local procurement of chips from 10% currently to 20%-25% by 2025

Mainland China has urged its domestic automakers, including BYD, Dongfeng, FAW, GAC and SAIC, to source up to a quarter of total chips locally, Nikkei Asia reported on May 16. Currently, these automakers meet around 10% of their total chip requirements locally. However, the Chinese Ministry of Industry and Information Technology expects these automakers to increase the local procurement to 20% or 25% by next year.