BYD’s chip-making strategy is far more aggressive than most people realize. 🧵 First, a fun fact: BYD started its semiconductor layout even before it got serious about manufacturing cars. During the 2020 global chip shortage, while every automaker was scrambling for chips, BYD not only avoidedsupply disruptions but even had the surplus to sell chips to rival car companies. There is only one reason:it has its own wafer fabs. BYD currently owns five wafer fabs. Its Chengdu plantis the largest automotive-grade wafer fab in China, handling the entire pipeline in-house—from chip definition and architecturedesign to manufacturing, packaging, and testing. This makes BYD unique among global automakers. Nio, XPeng, and Li Auto are also developing their own chips, but they all use the Fabless model—handling only design while outsourcing manufacturing to TSMC or SMIC. BYD, on the other hand, adopts the IDM (Integrated Device Manufacturer) model—controlling the entire chain of design and manufacturing. Thedifference between these two models is not just about money; it lies in a completely different underlying strategic logic. --- This model brings three concrete advantages: ① Supply chain immunity. Chip crisis? Non-existent. ② Faster iteration. With design and manufacturing teams under the same system, the time from definitionto deployment of new technologies is 6 to 12 months faster than the industry average, and smart driving feature updatesare 2 to 3 times more frequent than peers. ③ Extremely low cost. The cost of self-developed chips is only about 1/3 of purchasing Nvidia solutions externally. Latest achievement: XuanjiA3. China's first 4nm smart driving chip, boasting 700 TOPS ofcomputing power. But single-chip computing power is not the main point. The key is: A 100% higher computing power utilization rate compared to general-purpose chips—meaning BYD wastes far less powerwith the same specs. Unit power consumption is 20% lower than comparable products in its class. Because chip costs have been slashed, BYD has the leverage to offer LiDAR and urban NOA (Navigateon Autopilot) in its 100,000 RMB ($14k) class models. "Smart Driving for All" is not just a slogan; it's a mathematical certainty. Let's compare the major Chinese players: • BYD Xuanji A3: 4nm /700 TOPS / Fully self-developed, own wafer fabs • Li Auto Mach M100: 5nm / 1280 TOPS / Dataflow architecture, emphasizing effective computing power • Nio Shenji NX9031: 5nm / 1000 TOPS / Strong ISP capabilities,now operated independently • XPeng Turing: 7nm / 750 TOPS / Cost-effective approach, secured Volkswagen mass-production nomination BYD's chip is not the highest in single-chipcomputing power. But its moat lies not in parameters, but in its ecosystem. An asset-heavy layout with cumulative investments exceeding 100 billion RMB is the fundamental reason why most automakers and tech companies darenot touch wafer manufacturing.