Chinese EV battery giant CATL and Guoxin Micro set up new automotive chip firm
China’s push to strengthen its electric vehicle and semiconductor supply chains has taken another step forward with the creation of a new automotive chip company backed by two major industry players. Contemporary Amperex Technology, better known as CATL, has partnered with Unigroup Guoxin Microelectronics to establish a dedicated firm focused on automotive chips in Beijing. The move reflects a growing recognition that batteries and chips are becoming inseparable pillars of the future mobility industry.
As electric vehicles become more software driven and intelligent, control over core components such as semiconductors is increasingly viewed as a strategic necessity rather than an optional capability.
Details of the New Automotive Chip Venture
According to a filing submitted to the Shenzhen Stock Exchange, the new company has been registered under the name Tongxin Micro Technology. It has a registered capital of three hundred million yuan, equivalent to about forty three million US dollars. The venture brings together CATL owned Wending Investment, Tongxin Micro, a subsidiary of Guoxin Micro, and five additional affiliated entities.
The ownership structure highlights the semiconductor side as the dominant partner. Tongxin Micro invested one hundred fifty three million yuan, securing a controlling fifty one percent stake in the new firm. Wending Investment, backed by CATL, contributed fifteen million yuan, resulting in a five percent shareholding. The remaining equity is held by other participating affiliates.
Why CATL Is Moving Into Chips
CATL’s involvement in an automotive chip venture underscores how battery makers are expanding beyond their traditional domains. Modern electric vehicles rely on a growing number of chips for battery management systems, power control, safety features, and intelligent driving functions. Any disruption in chip supply can directly affect vehicle production.
By taking a stake in a semiconductor focused company, CATL is positioning itself closer to the heart of vehicle electronics. The move allows it to gain insight into chip development while supporting a more resilient domestic supply chain that aligns with China’s broader industrial goals.
Guoxin Micro’s Role and Expertise
Guoxin Micro brings established experience in semiconductor design and development. Through its subsidiary Tongxin Micro, the company contributes technical leadership and operational control to the new venture. This reflects a division of labor in which chip expertise guides product development, while CATL offers industry scale, application scenarios, and long term demand from the electric vehicle sector.
The partnership allows Guoxin Micro to deepen its presence in the fast growing automotive semiconductor market, which is expected to expand rapidly as vehicles become more electrified and connected.
Automotive Chips as a Strategic Bottleneck
Automotive chips have emerged as one of the most sensitive components in the global supply chain. Shortages in recent years exposed vulnerabilities for carmakers worldwide, leading governments and companies to reassess their dependence on overseas suppliers.
In China, automotive semiconductors are seen as a critical bottleneck. Developing domestic capabilities is a priority, particularly for power management, microcontrollers, and chips used in battery systems. The CATL Guoxin partnership fits squarely into this national push to localize key technologies.
Implications for the EV Industry
The creation of Tongxin Micro Technology highlights a trend toward deeper integration across the electric vehicle value chain. Battery producers, chip designers, and automakers are increasingly collaborating to ensure compatibility, efficiency, and supply security.
For the broader industry, such ventures may accelerate innovation by aligning chip design more closely with real world vehicle requirements. Tailored automotive chips could improve performance, reduce costs, and enhance safety in future electric vehicles.
Beijing as a Hub for High Tech Collaboration
Locating the new firm in Beijing reflects the city’s role as a center for technology research, policy coordination, and high end manufacturing. Proximity to regulators, research institutions, and major industrial players offers advantages for a company operating at the intersection of batteries, chips, and vehicles.
This environment may also help the venture secure talent and align with national strategies for semiconductor development.
A Signal of Long Term Industrial Strategy
While the initial investment size is modest relative to CATL’s overall scale, the strategic significance is considerable. The partnership sends a clear signal that leading players in China’s electric vehicle ecosystem are preparing for a future where control over both energy storage and computing power is essential.
As electric vehicles evolve into intelligent platforms on wheels, alliances like this one suggest that the boundaries between battery companies and chipmakers will continue to blur, reshaping the competitive landscape of the global auto industry.
