- Geely is evaluating the M97 chip, jointly developed by Nio and Axera, for a dual-chip L3 autonomous driving system.
- Shenji has made initial progress in supplying its technology externally and secured a Hefei government nomination for an edge-inference project.
The M97 smart-driving chip developed by GeniTech Co Ltd (Shenji), the chip unit of Nio Inc (NYSE: NIO), may enter Geely Auto‘s (HKEX: 0175) supply chain, potentially advancing its expansion into third-party customers.
Geely’s preliminary plan is to use 2 M97 chips to develop an L3 autonomous driving system, local media outlet 36Kr reported on Wednesday, citing people familiar with the matter.
The report did not say whether the companies had signed a nomination or supply agreement, nor did it disclose any potential models, procurement volumes or mass-production timeline.
The development represents a more concrete sign of potential cooperation than in March, when 36Kr reported that Shenji and its partner Axera Semiconductor were pitching the M97 to automakers including Geely and Leapmotor (HKEX: 9863).
The M97 is the first driver-assistance chip jointly developed by Shenji and Axera for third-party customers, offering more than 700 TOPS of computing power.
The chip is positioned against Horizon Robotics’ (HKEX: 9660) Journey 6P, which provides 560 TOPS. Axera previously said the M97 was scheduled to be released in the third quarter.
In addition to Geely, Leapmotor and Chery (HKEX: 9973) have shown interest in the M97, according to 36Kr, although the report did not disclose the progress of those discussions.
Some Chinese automakers are seeking more competitively priced domestic high-compute chips while retaining control over their driver-assistance algorithms. That creates a potential market opening for the M97.
Shenji has made initial progress in supplying its technology externally and has secured a nomination for an edge-inference project from the government of Hefei, Anhui province, 36Kr said.
Nio has not disclosed details of the cooperation between Shenji and Axera. In a March report, 36Kr said industry sources described the arrangement as relatively complex, as it was neither a straightforward intellectual-property purchase nor a direct procurement of an existing chip.
Engineers from the 2 companies jointly developed a customized chip for external customers based on Shenji’s core modules and architecture.
The technology-supply arrangement has already generated hundreds of millions of yuan in licensing fees for Nio, 36Kr said in Wednesday’s report, citing an industry source close to Axera. Nio’s returns could increase further if chip shipments expand.
Shenji raised 2.257 billion yuan ($330 million) in its first funding round in February, giving it a post-money valuation of 8.27 billion yuan. Following the transaction, Nio continued to hold a controlling 62.7% stake in Shenji through a subsidiary.
Nio’s in-house developed Shenji NX9031 smart-driving chip has been deployed across the entire Nio and Onvo vehicle lineups. Its cumulative shipments had exceeded 300,000 units as of July.
Morgan Stanley says GeniTech’s debut at WAIC 2026 takes Nio’s stock narrative one step further toward a vertically integrated AI chip platform.
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