China AI number 244. Can Chinese automotive chips overtake on the turn? By Jeffrey Ding. Subtitle. Examining factors behind China's low localization rates in automotive chips. Greetings from a world where I'm very jealous of my grandma going to eat crab at Yangqing Lake. Heading. Feature translation. The localization rate of automotive chips is still less than 10%. How can Chinese automotive chips take opportunities to overtake context? I use the emerging technology observatory scout tool again to scout out this week's feature translation from Kijing's transportation industry portal linked to original article. Here's Scout summary. Driven by the growth in demand for new energy vehicles, China's automotive chip sector is also undergoing rapid development. Nearly 300 companies are developing a range of chip products in areas such as cockpits in autonomous driving, and the automotive chip market is expected to reach 29 billion US dollars by 2030. However, while China's chip production localization rate has increased from 5% to 10%, China still lags behind the major chip producing countries, such as the United States and Japan. Challenges remain due to foreign protectionist measures, notably including the US's 2022 Science Act and technical weaknesses in the domestic industry. Key takeaways. Chinese automotive chips are gaining speed. In the Navigate on Autopilot, NOA, Intelligent Driving Chip Market, Chinese startup Horizon Robotics, 49% of market, has edged NVIDIA to become the industry leader. One semiconductor firm, CEO details the case for optimism to Kijing. The largest automobile market is in China. The fastest engine of technological innovation and change is in China, and the fastest growing downstream customers are also in China. Chinese chip manufacturers are based in this type of innovative soil in China. They have the best advantage to work closely with downstream partners to jointly create some independent and indigenous products in the future. On that point, China accounts for 60% of global new energy vehicle production. This was a fun stat. Average, heading. Of chips used in new energy vehicles greater than 1,000. Whereas, heading. Of chips in consumer electronics like phones and PCs sits at roughly dozens to hundreds.