BYD plans to debut its in-house developed Xuanji A3 smart driving chip in a new Denza-brand production vehicle in 2027. The chip was unveiled in May 2026 as China's first smart driving processor built on advanced 4nm technology, marking a key step in BYD's vertical integration efforts.
Chip Performance and Technical Specifications
A single Xuanji A3 chip delivers over 700 TOPS of computing power. When three chips work together, they provide a combined 2,100 TOPS, supporting L3 and L4 autonomous driving levels. The chip offers 20% lower power consumption per unit of computing power compared to competing products, with algorithm optimization improving computing efficiency by 100%.
Strategic Vertical Integration in AI Era
Developing proprietary chips has become a critical strategy for Chinese EV manufacturers to establish competitive advantages in the AI era. Nio, Xpeng, and Li Auto have all launched their own smart driving chips and integrated them into mass-produced vehicles.
BYD's Semiconductor Expertise and Infrastructure
BYD has been developing semiconductor technology for over two decades. The company established its integrated circuit design department in 2002, which became the foundation for BYD Semiconductor. In 2008, BYD acquired Ningbo Zhongwei Semiconductor to enter the IGBT field. Today, BYD's semiconductor R&D team exceeds 7,000 employees, supported by four research centers and five wafer fabrication plants. The company has invested over 100 billion yuan in semiconductor R&D.
