SGMW Invents New Car Chip To Level Up China's Local Material Usage

Car chips are now a rare item that is needed. (photo: GM)

JAKARTA - One of General Motors Co's joint ventures in China said on Wednesday September 15 that it is developing a new car chip that aims to increase the use of locally sourced chips in the next five years.

Liuzhou-based SGMW, GM's venture with partners SAIC Motor Corp and Guangxi Automobile Group, said at an industry conference that it had been developing its own automated computing chip since 2018.

SGMW did not say whether it would only design chips or participate in chip manufacturing but said it would increase cooperation with Chinese manufacturers to improve the quality and economy of its chips.

A protracted global shortage of semiconductor chips has affected major automakers including Ford Motor Co, Honda Motor Co Ltd, and Volkswagen AG, forcing many to be unemployed or cut production.

SGMW is also developing a battery swap station for its micro-electric vehicles, the company source said at the World New Energy Vehicle Congress.

The global chip supply shortage as a result of the COVID-19 pandemic has become a major issue for high-tech manufacturers. Car manufacturers, cell phone manufacturers, and other electronics manufacturers have experienced production problems due to the scarcity of these chips.

Product prices are becoming increasingly expensive and production levels are minimal, which in turn has affected the economies of several countries. This has also caused the shortage of chip supply, which has now become a global issue for the US, European Union, South Korea, Japan, and even Indonesia.