Nio CEO Confirms Massive Back-Up to Rivals 🚀

NIO is actively transforming its chip division from a cost center into a new revenue stream. CEO William Li confirmed that NIO is supplying its self-developed chips to other automakers like Leapmotor and Geely, as well as exploring opportunities in robotics, which could unlock billions in value for the company .

Here is a breakdown of the developments and the financial implications:

🤝 Key Partnerships & Clients

NIO’s semiconductor unit, Shenji Technology, has formed a joint venture with Axera and OmniVision to supply chips externally . The primary confirmed clients in the automotive sector are Leapmotor and Geely .

Leapmotor: This automaker delivered nearly 600,000 vehicles in 2025 and has set a sales target of 1.05 million units for 2026. A large-scale deployment of NIO's chips across Leapmotor’s fleet represents a significant revenue opportunity .
Geely: Is another cost-sensitive automaker that has been approached as a potential client for NIO’s chips .
🧠 The Chips: M97 and Beyond

NIO is leveraging its in-house technology to create chips tailored for external clients, distinct from the top-tier chips used in its own vehicles.

Chip Model Target Compute Power Target Market / Clients Status
M97 ~700 TOPS Cost-sensitive automakers (e.g., Leapmotor, Geely) Tape-out completed; launch expected in Q3 2026
9031e ~128 TOPS Lower-cost vehicle segments In planning stages
Next-Gen Chip High-performance Broader client base (auto, robotaxi, AI firms) Tape-out completed; in mass production prep
The M97 chip is a strategic product. It retains the architecture of NIO's premium NX9031 chip but reduces the computing power from over 1,000 TOPS to around 700 TOPS. This approach helps control costs, making it an attractive alternative to NVIDIA and Qualcomm products for other automakers .

💰 Revenue Potential & Financial Impact

NIO's chip monetization strategy is already generating tangible results and is central to the company's path to profitability.

Immediate Licensing Revenue: The company has already generated several hundred million yuan (RMB) in licensing revenue from its chip technology . Different licensing models can range from millions for a single IP to hundreds of millions for full SoC technology .
Cost Savings: Using its own chip in NIO vehicles reduces per-vehicle component costs by approximately 10,000 yuan (about $1,400) compared to using NVIDIA hardware .
Improved Profitability: NIO reported its first-ever quarterly profit in Q4 2025, exceeding RMB 1.2 billion, a milestone partly attributed to the spin-off and revenue from its chip business .
Investor Confidence: The chip unit, Shenji Technology, has already raised RMB 2.257 billion in its first external funding round at a valuation approaching RMB 10 billion. NIO still retains a controlling 62.7% stake .
🎯 Beyond Cars: Robotics and AI

NIO’s ambitions for its chip technology extend beyond the automotive industry. CEO William Li has explicitly stated that the company sees "good potential" for applying its high-computing-power chips to other devices, such as robots. NIO plans to work with tech partners to explore more use cases and application scenarios, further expanding its total addressable market .

Otherwise a disclaimer to note on these video is that all content that I will be sharing on the video must not be taken as professional financial advise as there are just my opinions. Otherwise for more stock market videos visit our youtube channel @Phumudzo Siphoro
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