Nvidia expands its reach in China's EV sector

Nvidia announced the move at a Monday event

Nvidia said four Chinese electric vehicle brands will use its technology as the brains for automated driving systems, underscoring the U.S. chip maker's determination to expand in China despite Washington's tighter export rules.

Chinese automakers Li Auto, Great Wall Motor, Zeekr and the new EV unit of Chinese telecommunications company Xiaomi will use Nvidia's DRIVE technology to power automated driving, Nvidia said on Monday at the CES technology conference in Las Vegas.

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WHY IT'S IMPORTANT

China's rising EV brands are a key market for Nvidia's automotive technology business. Chinese automakers are racing each other to launch more advanced in-vehicle infotainment displays and automated driving functions. That's created a growth opportunity for Nvidia, Intel, Qualcomm and other semiconductor manufacturers.

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Nvidia logo displayed on a phone screen and microchip and are seen in this illustration photo taken in Krakow, Poland on July 19, 2023.  ((Photo by Jakub Porzycki/NurPhoto via Getty Images) / Getty Images)

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SANTA CLARA, CALIFORNIA - MAY 25: A sign is posted at the Nvidia headquarters on May 25, 2022 in Santa Clara, California. Semiconductor maker Nvidia will report first quarter earnings today after the closing bell. (Photo by Justin Sullivan/Getty Images / Getty Images)

Nvidia and its U.S.-based rivals face challenges meeting demands from Chinese customers for powerful chips, while remaining in compliance with tighter U.S. controls on exports of advanced semiconductors to China.

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POWERING ONLINE CAR SHOPPING

In related CES announcements, Nvidia said it is working with advertising giant WPP, Lotus and six other companies to develop more advanced online shopping tools. Using Nvidia technology, automakers and dealers hope to create online shopping sites with three dimensional graphics and more lifelike graphics, said Danny Shapiro, Nvidia's vice president for automotive.

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