Contemporary Amperex Technology Co. Limited (CATL), the world’s largest electric vehicle (EV) battery manufacturer, made headlines by formally entering the semiconductor industry. Partnering with Unigroup Guoxin Microelectronics, a leading Chinese chipmaker, CATL launched a new joint venture focused on automotive-grade chips — a move that could fundamentally reshape the dynamics of EV supply chains.
This development reflects a growing trend among major players in the EV ecosystem: vertical integration of semiconductor design and production. The decision is both strategic and timely. The automotive industry has experienced repeated chip shortages over the past few years, exacerbated by global geopolitical tensions and post-pandemic disruptions. For CATL, securing a stable supply of microcontrollers, power management ICs, and sensor chips is not only essential for battery efficiency and integration but also crucial for its competitive positioning as EV architectures become increasingly complex and software-defined.
The new venture — though yet unnamed — aims to design and manufacture automotive chips tailored to EV battery systems and powertrains. Unigroup Guoxin brings IP and design expertise, while CATL contributes capital, market access, and a deep understanding of EV integration requirements. Early reports suggest the company will target 28nm and 40nm process nodes, optimized for reliability and thermal stability rather than bleeding-edge performance.
This partnership also aligns with China’s broader national semiconductor strategy. Beijing has prioritized automotive semiconductors as a critical domain for self-reliance, and this move reinforces the state’s encouragement for domestic champions like CATL to play a more active role. It echoes other trends in the region — from BYD’s internal chip development to Huawei’s aggressive reentry into the EV supply chain.
From an industry-wide perspective, CATL’s move mirrors similar developments globally. Tesla has increasingly insourced chip design for its autonomous systems, while legacy OEMs like General Motors and Volkswagen are forming alliances with chipmakers to secure access to key silicon. As EVs become more reliant on custom microcontrollers, analog ICs, and high-efficiency power semiconductors, the line between carmaker and chip designer continues to blur.
The emergence of a battery manufacturer entering the chip design landscape highlights the shifting nature of microelectronics demand. Where once the computing and mobile sectors dominated IC innovation, automotive and energy systems are now becoming major forces driving specialization in analog, mixed-signal, and application-specific components.
As this venture evolves, it will be important to track its technical roadmap, partnerships with foundries, and integration into CATL’s broader battery ecosystem. If successful, it could set a precedent for further convergence between energy systems and semiconductors — not only in China but globally.