CATL Enters Chip War as China’s EV Battery Giant Launches Automotive Semiconductor Firm
China’s electric vehicle supply chain is tightening its grip on core technologies. Contemporary Amperex Technology (CATL), the world’s largest EV battery maker, has teamed up with Unigroup Guoxin Microelectronics to establish a new automotive chip company in Beijing, signaling a strategic push beyond batteries and into semiconductors.
New Automotive Chip Firm Backed by Major Players
According to a filing with the Shenzhen Stock Exchange, CATL-owned Wending Investment, Guoxin Micro subsidiary Tongxin Micro, and five affiliated entities have jointly formed Tongxin Micro Technology. The new company has a registered capital of 300 million yuan (about US$43 million).
Tongxin Micro is the controlling shareholder, contributing 153 million yuan for a 51% stake. CATL’s Wending Investment injected 15 million yuan, securing a 5% ownership. The remaining shares are held by other partners, including employee stock platforms.
Tsinghua-Linked Investors Add Strategic Weight
Four employee stock ownership platforms under state-owned Tsinghua Unigroup collectively control 24% of the new firm, highlighting strong institutional and academic backing. Guoxin Micro itself traces its origins to Tsinghua University, one of China’s most influential research institutions.
This ownership structure reflects China’s broader effort to integrate capital, talent, and industry expertise in strategic technologies such as automotive semiconductors.
High-Value Asset Transfer Raises Eyebrows
The newly formed entity is set to acquire Tongxin Micro’s automotive domain controller chip business for 193 million yuan. Based on the asset’s book value, the deal represents an appreciation rate of more than 3,700%, underlining the perceived strategic importance of automotive chips.
Domain controller chips are essential for managing vehicle computing systems, including intelligent driving, power management, and vehicle networking.
Why CATL Wants In
Guoxin Micro said CATL’s involvement would help strengthen relationships with key customers in the automotive sector. For CATL, the move aligns with a broader trend among EV leaders seeking tighter control over core vehicle electronics, especially as chip shortages and supply chain risks persist.
Sharing Risk in a Long-Term Bet
Guoxin Micro acknowledged that automotive chip development requires heavy upfront investment and long timelines. By bringing in external investors like CATL, financial risk will be shared in proportion to equity stakes.
The partnership highlights China’s push to localize critical EV technologies—and signals that the battle for the future of electric vehicles is increasingly being fought at the chip level.
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