After the exit from Warren Buffett’s investment holding berkshire Hathaway had pushed the BYD share into the minus in the last few days, it continues on Wednesday.
• BYD share further under pressure
• Emergency plan for possible export restrictions on Nvidia chips
• BYD is currently using Nvidia chips in several areas
On the stock exchange in Hong Kong, the share of the Chinese electric car manufacturer BYD ultimately lost 0.56 percent to 105.70 HKD on Wednesday. The group recently tried to dispel some investors’ worries. So Stella Li, Executive Vice President of BYD, commented on Tuesday to “CNBC” on the dependency of the carmaker on semiconductors of the US group Nvidia and emphasized that he was prepared for possible geopolitical risks. According to LIS, the company has a “backup plan” if it was cut off from access to Nvidia chips. However, there are no official instructions from the Chinese government to do without the US chip developers’ products.
BYD sees itself well positioned for the possible export ban from Nvidia chips
Li told “CNBC” that BYD has already had extensive development resources that could step in in the event of global delivery bottlenecks. Even during the Covid 19 pandemic, the company benefited from this in-house development by being able to react faster than many competitors to bottlenecks. This in-house technology now sees BYD as a strategic protection if there are restrictions on access to foreign chips through trade restrictions or export controls.
However, Li also emphasized the difference between high-performance AI chips used for data centers and generative AI, and the processors that are installed in vehicles. The latter, such as Nvidia’s drive platforms, are designed for driver assistance systems and autonomous functions and did not fall into the same regulatory framework as AI accelerator chips. Therefore, it is less likely that China is completely prohibited from using Nvidia products in vehicles.
BYD and NVIDIA currently with close cooperation
BYD has been working closely with Nvidia for several years. The company is already using the Drive Orin Platform, which serves as a central control system for software-defined vehicles in numerous BYD models. In addition, BYD announced that Nvidia’s new Drive Thor Architecture will also be used for the next generation of its intelligent cockpit and autonomy systems. The market launch of the corresponding BYD models with the more progressive chip is already planned for the coming year.
In addition to vehicle technology, BYD also uses Nvidia’s cloud and AI infrastructure for other business areas. This includes virtual tools for product development, optimization of manufacturing processes and supply chains as well as the development of digital services, as can be seen from a message from the AI Platzhirsch.
Editor finance.net
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