Xpeng is looking to lessen its dependence on foreign-made chips for its self-driving technology. The aim is to achieve better integration between its hardware and software.

The Chinese electric vehicle startup is “looking at all possible options” to keep its advantage in the fiercely competitive market by exploring in-house chipsets for autonomous driving, Wu Xinzhou, Xpeng’s vice president in charge of autonomous driving, told CNBC on Wednesday.

“So far we are doing very well in software,” Wu said, without providing further details.

The remarks came after domestic media reports revealed that Xpeng had set up a small team to develop semiconductors against the backdrop of an ongoing global chip shortage. The shortage has disrupted production for some automakers including Xpeng’s domestic rival Nio.

Also on Wednesday, Xpeng unveiled the P5, its third car model, which uses chips from Nvidia and Qualcomm for autonomous driving and smart cockpit respectively.

Xpeng is betting big on its own car technologies to stand out among electric carmakers, and this push carries more significance as Baidu and Xiaomi, which harbor ambitions for self-developed artificial intelligence chips, have entered the car manufacturing business.

Contact reporter Ding Yi (yiding@caixin.com)

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