NIO's Intelligent-Driving Chip Subsidiary Shenji Secures RMB2.257 Billion Investment

Strategic Investment Boosts Shenji's Innovation

Shenji, the intelligent-driving chip subsidiary of NIO Inc., has successfully secured an aggregate investment of RMB2.257 billion (approximately $330 million USD) in cash for newly issued shares. The definitive agreements were entered into with a group of investors in China on February 26, 2026. This significant capital injection is poised to accelerate Shenji's advancements in intelligent-driving chip technology and expand its commercial footprint.

The investment round has propelled Shenji's post-investment valuation to nearly RMB10 billion (approximately $1.4 billion USD). Following the completion of this transaction, a subsidiary of NIO will maintain a controlling equity interest of 62.7% in Shenji, ensuring NIO continues to consolidate its financial results. The participating investors will collectively hold 27.3% of Shenji's equity, with the remaining 10.0% allocated to entities managing Shenji's share incentive plan.

Key Investors and Future Focus

The consortium of investors includes multiple industrial capital firms and leading industry institutions. Among those reported to be participating are Hefei Guotou, Hefei Haiheng, IDG Capital, SMIC Polytech, and Oriza Holdings. The primary objective of this funding is to bolster Shenji's research and development efforts in advanced chips and support its commercial expansion, aligning with NIO's long-term vision for autonomous driving and embodied intelligence technologies.

Shenji's Technological Prowess and Market Expansion

Shenji has already established itself as a leader in the domestic market. It is recognized as the first Chinese company to both develop a 5-nanometer automotive-grade chip and successfully bring it into large-scale commercial use. Its flagship processor, the Shenji NX9031, is noted for delivering computing power equivalent to four conventional chips in a single unit, positioning it among the top domestic in-vehicle processors by performance.

Since entering mass production in 2024, shipments of the Shenji NX9031 have surpassed 150,000 sets, with the chip integrated across NIO's entire vehicle lineup to power its driver-assistance systems. With the new capital, Shenji plans to:

• Broaden its product portfolio to include ultra-high-performance processors for next-generation intelligent driving.
• Develop additional chips targeting adjacent application areas to diversify its offerings.
• Actively pursue external customers beyond the NIO ecosystem.
• Expand into emerging sectors such as embodied robotics and agent-based inference, aiming to provide comprehensive chip and intelligent hardware solutions for the era of artificial general intelligence.

The significant R&D investment in the Shenji NX9031, previously estimated to be in the billions of yuan—equivalent to building 1,500 battery swap stations—underscores NIO's commitment to in-house technological innovation. This latest investment marks a pivotal step in monetizing this capital-intensive venture and solidifying Shenji's position in the global intelligent-driving chip market.