Avatr 12, an EV developed by Huawei, CATL and Changan Automobile, has been rolled off the production line in Chongqing, China. Huawei plans to deepen ties with carmakers with Chongqing's advantages of location and complete automotive supply chain. The city is also rising to be a new hub of power semiconductor segment.
Tan Benhong, chairman and CEO of Avatar Technology, said the company invested CNY2 billion (US$270 million) with Huawei and CATL in the mass production of Avatr 12. The vehicle is equipped with Huawei's HarmonyOS 4 and ADS 2.0, an advanced driver assistance system.
Huawei signed a strategic cooperation agreement with Chongqing at the beginning of 2023. Industry sources said Huawei will likely become a leading automotive tier-1 supplier. Since the company holds chip resources, it can grow to be competitive rapidly.
Avatr is a high-end EV brand that Avatar Technology, CATL and Changan established in Chongqing. A Huawei-backed vehicle design institute of Seres, another Chinese EV brand, is located in the city. Many power semiconductor projects have also been conducted in Chongqing.
Changan's EV brand Deep Blue formed the Chongqing Anda Semiconductor with StarPower Semiconductor to develop automotive power semiconductors.
China-based Sanan Optoelectronics plans to form a joint venture with STM in Chongqing to mass-produce 8-inch SiC devices for STM or its customers. The JV is slated to start production in the fourth quarter of 2025. The full buildout is anticipated in 2028. The total investment is about US$3.2 billion. Sanan will invest CNY7 billion in constructing a separate 8-inch SiC substrate manufacturing facility in Chongqing to supply the JV.
The power semiconductor projects of China Resources Microelectronics and Alpha and Omega Semiconductor are also located in Chongqing. CRM invested CNY7.55 billion in a 12-inch wafer fab that can produce 30,000 to 35,000 wafers monthly.
Alpha and Omega Semiconductor has received automotive-grade certification for chip production and released the mass production of IGBT. The company manufactures 10,000 to 11,000 12-inch wafers every month for industrial and consumer electronics.
Most China-based power semiconductor companies have been located in the Yangtze Delta area. As power semiconductors gain adoption, Chongqing is gearing up for more production capacity and suppliers. That is likely why Huawei chose the city to scale up its EV business.
Chongqing's government aims to form an EV component cluster by 2027, attracting 800 companies. The government targets CNY700 billion in annual revenues.
