BYD confirms backup plan if China blocks access to Nvidia chips

BYD has confirmed it has a full backup strategy in case China blocks its access to Nvidia’s vehicle chips. This came directly from Stella Li, executive vice president at BYD, in a live interview on Tuesday. 

Li said, “Everybody has a backup. BYD has [a] backup.” No official order has been given from Beijing yet, but the automaker is clearly not waiting around for one.

Li wouldn’t say what the actual plan B looks like. But she brought up how BYD handled the global chip shortage during the Covid-19 pandemic. Back then, while most carmakers were scrambling for parts, BYD faced “no issue,” according to her. 

She explained that this was because the company already had its own tech built in-house. They didn’t need to rely on outsiders to stay on track. That ability to move fast on alternatives helped them dodge the worst of the supply crunch.

BYD relies on its in-house tech and says no ban is in place yet

BYD has made it a goal to control its supply chain. That includes not just building cars, but also making its own batteries and other core components. “We have a lot of strong … even deeper technology in-house, so we always have backup,” Li said. That line sums up how the company sees itself: always prepared. Not just flexible, but fully armed with options.

The discussion comes as Nvidia finds itself in the middle of U.S.-China tensions. Its AI chips have been a major concern for both governments. One chip, the H20, was designed to follow U.S. export rules.

First it was banned. Then it was allowed to be sold again in China after a deal between Nvidia and Washington. Even now, reports suggest Chinese tech firms are being quietly discouraged from buying Nvidia’s AI hardware.

However, those AI chips are not the same as the ones used in cars. For vehicles, Nvidia makes separate systems like the Drive AGX Orin. This chip helps with semi-autonomous driving functions. BYD is a known user of this Nvidia automotive product. So far, there’s no sign that China plans to stop companies like BYD from using that specific chip.

Li made that clear in her comments. She said the company hasn’t received any instructions to cut off Nvidia parts. She also made it sound unlikely. “I don’t think any country will do that, because this automatic will kill Nvidia,” she said. Then she added, “So Nvidia now is the highest market value company, so if they lose the big market from China … nobody wants to see this.”

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