Contemporary Amperex Technology (CATL), the global leader in EV batteries, is aggressively expanding its vertical integration by forming a new automotive chip joint venture with Unigroup Guoxin Microelectronics. The new entity, Tongxin Micro Technology, will focus on the development of automotive domain controller chips, which serve as the central processing "brains" for next-generation electric vehicles.
By partnering with an established semiconductor player, CATL aims to secure its supply chain against market volatility while integrating its battery systems more deeply with vehicle intelligence.
Key Financial Data of the Tongxin Micro Technology Joint Venture
The venture is structured to leverage existing intellectual property while sharing the high R&D costs associated with silicon development.
- Capitalization: The entity launched with a registered capital of 300 million yuan ($43 million).
- Ownership Split: Guoxin Micro holds a controlling 51% stake, while CATL’s investment arm, Wending Investment, holds 5%. The remaining 24% is held by Tsinghua Unigroup-affiliated platforms.
- Strategic Acquisition: Tongxin Micro Technology will acquire the existing automotive domain controller business from its parent for 193 million yuan ($27.5 million).
A More Centralized Electronic Architecture for EV Market
The move comes as the Chinese automotive market undergoes a rapid shift toward centralized electronic architecture. As of June 2025, the penetration rate of autonomous driving domain controllers in Chinese passenger cars reached 30.8%, a significant jump from 17.4% the previous year. High-performance chips are no longer exclusive to premium models; installations in the 100,000–200,000 yuan vehicle segment saw explosive growth in early 2025.
For CATL, this is a calculated move to evolve from a battery supplier to a full-stack technology provider. By influencing chip design, CATL can better integrate its Integrated Intelligent Chassis (CIIC) with the vehicle's core processing units. For Guoxin Micro, the partnership provides a guaranteed high-volume customer and a way to offload the financial risks of long-cycle chip development.
This collaboration ensures that as EVs become more "software-defined," CATL maintains control over the hardware that runs the code. The venture will focus on chips like the THA6206, a high-safety microcontroller (MCU) that meets the stringent ISO 26262 ASIL D functional safety standards.
→ Explore the full landscape of China’s manufacturing breakthroughs in the Tocco Report: China's New Industrial Stack Yearbook 2026.
