BYD unveils China's first 4nm smart-driving chip, brings LiDAR to its $10,300 EV

BYD Co. introduced its first domestically developed 4-nanometer smart-driving chip, the Xuanji A3, at a Shenzhen event on Thursday. The chip supports Level 3 and Level 4 autonomous driving and is China’s first 4nm architecture semiconductor for vehicles. Three clustered Xuanji A3 chips deliver over 2,100 TOPS of combined computing power, with BYD stating its in-house algorithms double efficiency. The chip powers BYD’s new central computing platform, merging previously separate systems for smart cockpits, driver-assistance, and electric propulsion software. CEO Wang Chuanfu highlighted BYD’s unique capability as the only automaker globally to control all seven stages of chip production, from design to wafer testing. The company has invested over 100 billion yuan ($14.75 billion) in semiconductors since establishing its chip division in 2002, employing 7,000 engineers across four R&D bases and operating five wafer fabrication plants. BYD will expand its God’s Eye driver-assistance system to all China models, including the mass-market Seagull hatchback priced at 69,800 yuan ($10,300). LiDAR sensors, typically reserved for premium vehicles, will be offered as a 12,000 yuan add-on, creating a new revenue stream amid industry price pressures. Wang also announced a one-year insurance policy covering accident damages when God’s Eye is active, though the system has faced criticism for underdelivering compared to competitors like Tesla. The launch intensifies competition among Chinese EV makers, with rivals such as Nio, Xpeng, and Li Auto developing their own in-house chips. Tesla, meanwhile, relies on a camera-only approach and is seeking Chinese regulatory approval for its Full Self-Driving system. BYD’s move follows eight consecutive months of declining sales but leverages data from over 3.15 million vehicles equipped with driver-assistance hardware, generating 200 million kilometers of driving data daily. The Xuanji A3’s mass production marks a strategic shift for BYD, consolidating its technology leadership in China’s EV sector. Analysts note the chip’s 20% lower power consumption compared to competitors, aligning with BYD’s focus on efficiency amid global semiconductor shortages. Shares in BYD rose as much as 3% in Hong Kong trading following the announcement.