Nio reportedly licenses its tech to auto chipmaker, gains revenue from one of its most cash-burning projects
Nio has started licensing its Shenji NX9031 chip technology to an automotive chip company, generating revenue from a cash-intensive project. This move aligns with Nio's cost-cutting and revenue diversification efforts amid cash flow pressures. The licensing models vary in contract values, with single IP licenses in the millions and SoC technology in the hundreds of millions of RMB. Nio's chip business is set for commercial expansion, with plans to spin off as Anhui Shenji Technology Co Ltd, allowing orders from other automakers.
- Nio has begun external supply of its Shenji NX9031 chip technology, licensing it to an automotive chip company, according to LatePost.
- Different licensing models correspond to varying contract values, an informed source stated.
Nio Inc (NYSE: NIO, HKG: 9866) has reportedly started licensing chip-related technologies to other companies, generating revenue from one of its most cash-burning operations.
The company has commenced external supply of its in-house developed high-end smart driving chip Shenji NX9031, licensing technology to an automotive chip company, local media outlet LatePost reported today.
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The report did not disclose further details about the licensing deal but cited a chip industry insider as saying that different licensing models correspond to varying contract values.
For a single IP license, cooperation fees typically range in the millions of RMB; for system-on-a-chip (SoC) technology licensing, order values could reach hundreds of millions of RMB, the source said.
LatePost noted today that the move comes as Nio intensifies cost-cutting and revenue diversification efforts amid significant cash flow pressures and fourth-quarter profitability commitments, setting the stage for its chip business's commercial expansion.
Nio unveiled the Shenji NX9031 in December 2023. The ET9, which began deliveries in late March, features two Shenji NX9031 chips, while other new Nio-branded models incorporate one Shenji chip.
On March 29, during the China EV 100 Forum, Nio founder, chairman, and CEO William Li told local media that Nio's chip and operating system are open to the entire industry and welcomes peers to adopt them.
"If you want to buy the best chips, you can come to Nio," he said at the time.
On June 17, LatePost reported that Nio planned to introduce strategic investors for its chip-related business, with the chip team set to become an independent project entity.
On June 18, another domestic outlet Cailian reported that this independent project entity had completed registration under the name Anhui Shenji Technology Co Ltd.
Following the spin-off of its chip business, Nio would accept orders from other automakers, according to Cailian's report.
Anhui Shenji Technology was registered on June 17 with Nio vice president Bai Jian as its legal representative.
Its registered capital is RMB 10 million, with business scope including chip design and sales, according to data provider Tianyancha.
Nio's potential chip spin-off aims to pave way for supplying other automakers, report says
Nio will take orders from other automakers after spinning off its chip business, according to a local media report.
