Automaker GAC Seeks China-Made Chips to Ease Dependence on Foreign Suppliers

Guangzhou Automobile Group Co. Ltd. (GAC) (601238.SH) is working to get more domestically produced microchips into its vehicles as it relies on overseas suppliers for about 90% of its automotive chips, an executive of the state-owned carmaker’s investment arm said.

GAC Capital Co. Ltd. sees plenty of opportunity to increase the share of domestic chips in the automaker’s cars. The company’s research shows that of the roughly 1,000 chips installed in the average GAC vehicle, 408 could be replaced with silicon made on the Chinese mainland, according to Yuan Feng, manager of GAC Capital.