- Nio accelerates shift to in-house chips with Onvo L90 upgrade
- New Shenji chip boosts performance while reducing dependency on Nvidia
Shenji Chip Integration Marks Key Technology Transition
The 2026 Onvo L90 is expected to feature Nio’s internally developed Shenji chip built on a 5 nm process, delivering substantial computational efficiency improvements. This shift reduces reliance on Nvidia’s Orin-X chips, which currently power Onvo’s systems. By aligning with the broader Nio technology stack, the L90 benefits from a unified architecture that enhances system scalability and performance. The move also reflects broader industry trends where automakers increasingly invest in proprietary silicon to control cost structures and innovation timelines within China.
Enhanced AI Architecture and LiDAR Integration
Major upgrades extend beyond hardware, as the L90 debuts a new iteration of the Nio World Model, improving perception and decision-making capabilities. A LiDAR-equipped variant will be introduced for the first time, enabling more precise environmental sensing and boosting autonomous driving reliability. This integration supports higher levels of intelligent driving functionality and aligns with advancements seen in Autonomous Driving & ADAS. The unified architecture ensures consistency across flagship and sub-brand vehicles, enhancing software optimization and feature deployment.
Performance, Cost Dynamics, and Chip Variants
Two potential Shenji chip options are under consideration for the L90. The high-performance NX9031 variant delivers over 1,000 TOPS of computing power but requires LPDDR5x memory, contributing to increased costs. Alternatively, a second-generation Shenji chip offers approximately 700 TOPS while significantly lowering cost, with performance comparable to three Nvidia Orin X chips. Rising memory prices have already increased vehicle costs by around 10,000 yuan, highlighting the financial pressures associated with high-end semiconductor integration within Supply Chain dynamics.
Strategic Implications for Nio and Industry Trends
Nio’s push toward in-house chip development reflects a broader strategic ambition to gain financial returns from its semiconductor investments. With over 150,000 Shenji chip shipments and recent funding exceeding 2.2 billion yuan, the company is positioning its chip division as both a technological and commercial asset. Parallel developments from competitors further validate this trend, as automakers increasingly adopt proprietary chips to differentiate capabilities. The Onvo L90 serves as a critical milestone in Nio’s transition toward full-stack control over intelligent driving technologies.
Frequently Asked Questions
What is the Shenji smart driving chip used in the Onvo L90?
The Shenji smart driving chip is Nio’s in-house developed semiconductor designed to power advanced driver assistance and autonomous driving features. Built on a 5 nm process, it delivers high computational performance for real-time data processing and AI-based decision-making. It enables improved perception, faster response times, and better integration with vehicle systems. By replacing third-party chips, it also helps Nio optimize costs and control its technology stack more efficiently.
Why is Nio moving away from Nvidia chips?
Nio is transitioning away from Nvidia chips to gain greater control over performance, cost, and innovation through in-house semiconductor development. Proprietary chips like Shenji allow tighter hardware-software integration and reduce dependency on external suppliers. This approach enhances scalability across vehicle models and supports long-term cost optimization. Additionally, it positions Nio competitively as more automakers adopt custom silicon to differentiate their intelligent driving capabilities and improve supply chain resilience.
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