Chinese electric vehicle manufacturers are intensifying their competition by developing in-house auto chips. The move is driven by the success of Tesla's self-designed chips and the desire to customize features and reduce supply chain risks. While Nvidia's automotive chips remain dominant, Chinese automakers are beginning to adopt their advanced technologies. BYD's founder Wang Chuanfu stated that while batteries drove the first phase of electric car development, semiconductors are now essential for the industry's focus on smart connected vehicles in its second phase.