The recently published February 2025 Insight Report on Intelligent Connected Vehicles by the China Printed Circuit Association (CPCA) reveals that domestic automakers have increasingly adopted indigenous chip products since the global chip shortage in 2021. Currently, the localization rate of automotive chips in China stands at approximately 20%, with state-owned enterprises leading the way with higher localization rates. The report further highlights that the recent tariff increase will serve as an additional catalyst for the localization of automotive chips, particularly in the analog chip segment, which is witnessing a faster substitution process. Conversely, the digital chip market remains predominantly controlled by foreign capital.
