Onvo L90 to Adopt Nio's In-House Developed Shenji Smart Driving Chip, Report Says

Key Takeaways

• Onvo L90 adopts Nio's Shenji smart driving chip.
• Chip built on 5nm process, rivals three Orin X chips.
• L90 price up $1,460 due to memory cost rise.
• Nio's in‑house chips now over 550,000 units shipped.
• Shenji unit secured $320 million financing, valued $1.45 billion.

Pulse Analysis

Nio’s decision to equip the Onvo L90 with its own Shenji AI processor reflects a broader strategic pivot toward vertical integration in the electric‑vehicle sector. By developing a 5 nm smart‑driving chip that can deliver roughly 1,000 TOPS of compute, Nio reduces its dependence on Nvidia’s Orin X line, which historically dominated high‑performance automotive AI. This internalization not only promises lower bill‑of‑materials costs but also grants Nio tighter control over firmware updates, data pipelines, and future feature rollouts, strengthening its brand differentiation in a crowded market.

From a technical standpoint, the Shenji chip’s claimed equivalence to three Orin X units positions the L90 as a strong contender for advanced driver‑assistance and emerging Level‑3 autonomy. Coupled with a first‑time LiDAR‑equipped configuration, the vehicle can offer richer perception stacks without the premium price tag traditionally associated with lidar systems. However, rising prices for high‑performance LPDDR5x memory have nudged the L90’s price upward by about $1,460, illustrating the cost pressures that even in‑house solutions face. Competitors such as Xpeng are following a similar path, deploying their own Turing AI chips, which suggests a rapid industry migration toward proprietary silicon to sustain performance gains while managing expenses.

Financially, Shenji’s trajectory underscores the commercial viability of automotive chipmaking. With cumulative shipments surpassing 550,000 units and a recent financing round of roughly $320 million that lifted its valuation to about $1.45 billion, the unit is poised to scale production and attract external OEM partnerships. This capital infusion enables mass‑production of a second‑generation Shenji chip, estimated at 700 TOPS but at a lower cost than the flagship NX9031. As Chinese EV makers accelerate the rollout of in‑house AI hardware, the balance of power may shift away from traditional semiconductor suppliers toward automakers that can bundle vehicle platforms with proprietary intelligence, reshaping the supply chain for years to come.