The Chinese government has recently launched a campaign urging electric-vehicle makers to increase their purchases from local auto chipmakers. This initiative is part of a larger effort to reduce reliance on Western imports and boost China’s semiconductor industry.
The Ministry of Industry and Information Technology has been asking carmakers to expand their buying of homegrown components, with an informal target set for automakers to source a fifth of their chips locally by 2025. Dissatisfaction with the pace of progress has led to increased pressure on companies to comply with these requests.
This push for increased localization comes amidst global chip shortages that have impacted various industries, including automotive manufacturing. By encouraging companies to support domestic chipmakers, China hopes to strengthen its semiconductor industry and reduce its dependence on foreign suppliers.
This initiative could have significant implications for the electric vehicle market in China, as companies will need to adapt to these new sourcing requirements. It remains to be seen how automakers will respond to this call to increase their purchases from local chipmakers, but with pressure mounting from the government, compliance may become a necessity for companies looking to operate in the Chinese market.
Overall, this campaign highlights China’s continued efforts to bolster its semiconductor industry and reduce its reliance on Western imports. As the deadline for meeting the informal target approaches, the automotive industry will be closely watching to see how companies navigate these new sourcing requirements.
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