Beijing to Promote Improvement of Automobile Chip Supply

At the main forum of the 2022 China Automobile Supply Chain Conference held on Tuesday, Yang Xudong, an officer of China’s Ministry of Industry and Information Technology (MIIT), said that the government will aim to support the domestic automobile computer chip industry, according to a report by Shanghai Securities Journal.

Yang said, authorities will continue to guide enterprises to increase technical research on automobile chips, promote the manufacturing capacity of automobile chip production lines, guide the construction of auto-grade inspection and certification capacity, strengthen the promotion and application of automobile chip solutions, and make use of relevant policies to promote the batch application of automobile chip products.

At the same time, the MIIT will increase policy support, give full play to the key role of local governments and leading enterprises in the industry. It will promote the improvement of automobile chip supply capacity, especially in the fields of new energy, intelligent vehicles and automated driving to seize opportunities and make breakthroughs to support the development of the automobile industry.

Yang Xudong said that electronic information manufacturing and automobile manufacturing, as two important pillar industries of China’s economic development, have developed rapidly, and their influence on supply chains plays a great role, among which automobile chips are the key part.

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Due to the historical and periodic market demand, together with the tight supply of integrated circuits and the continuing pandemic, maintaining stable supply of chips has been the focus of automobile supply chain enterprises in the past two years.

Guo Shougang, another officer of the MIIT, said at the conference that the government will continue to pay attention to the supply and demand of automotive chips, maintain communication, improve industry cooperation mechanisms, and support enterprises to voluntarily carry out inventory allocation and product lending. It will sort out lists of urgently needed automotive chip products and promote cooperation between vehicle, auto part and chip enterprises. The government will support chip firms to accelerate the expansion of production capacity and improve supply. With the publishing of a technical standard system for automobile chips, third-party testing service capabilities will be improved, together with the establishment of special insurance for automobile chips and a beneficial development environment.