TOKYO - Japanese automakers that have long relied on domestic or Western-made semiconductors are increasingly adopting Chinese-made automotive chips, marking a significant shift in procurement strategy as companies such as Toyota and Suzuki move to install Chinese systems not only in vehicles sold in China but also in models destined for other markets.
According to Horizon Robotics, a Chinese semiconductor developer, its products have been selected by Toyota, Suzuki and the Volkswagen Group for vehicles to be sold both within and outside China. Toyota is expected to introduce the chips in mass-produced models from around 2028 to 2029 for sale in China and other regions, while Suzuki is believed to be planning adoption for vehicles sold in India.
Horizon Robotics was founded in 2015 by a former executive who had been involved in autonomous driving development at Baidu. The company drew attention last year with a large-scale listing on the Hong Kong Stock Exchange. Known for its advanced performance, Horizon has at times been referred to as “China’s Nvidia.”
Its strength lies in system-on-chip (SoC) semiconductors that integrate multiple system functions into a single chip. The company has already secured extensive adoption among leading Chinese electric vehicle makers, including BYD. Its chips support advanced driver-assistance features such as automatic braking and lane-change assistance.
In December, Horizon announced that it had received orders for 10 million SoC units from automakers outside China. Adoption is now spreading globally, including among Japanese manufacturers. Although Horizon has not disclosed pricing, it is widely believed to offer overwhelming price competitiveness compared with rival products of similar performance.
To expand its presence in the automotive semiconductor market, Horizon has strengthened cooperation with parts manufacturers. Its adoption by Toyota was influenced in part by partnerships with Japanese companies. By combining Denso’s sensor technology with Horizon’s SoC, the companies aim to develop high-performance, low-cost driver-assistance systems. Horizon is also supplying products to Bosch, the German parts supplier, further embedding itself into global automotive supply chains.
However, concerns remain over the risks associated with adopting Chinese chips. While Horizon products are being introduced by automakers in various countries, some industry observers argue that using Chinese chips does not necessarily translate into stronger global competitiveness.
Honda President Toshihiro Mibe has expressed concern that even if technology is developed with competitive local suppliers in China, it may not be usable worldwide. A European parts executive also noted that although Chinese SoCs are proposed for their cost advantages, they are sometimes met with reluctance, suggesting limited persuasive power in global markets.
Automakers now find themselves at a crossroads: whether to prioritize cost performance or to weigh potential China-related risks as they reconsider their semiconductor strategies.
Source: テレ東BIZ
