Shanghai Mahe Xin Technology, the dedicated chip subsidiary of Chinese electric vehicle maker Li Auto, has successfully closed its first round of funding, raising a significant 1.625 billion RMB (approximately $224 million USD). This strategic investment underscores Li Auto’s commitment to advancing its in-house chip development capabilities.
Key Investors and Valuation
The funding round was spearheaded by prominent investors including Hangzhou Jingtong, BlueRun Ventures, and Huaye Tiancheng, with participation from Qiming Venture Partners. Li Auto itself injected 1 billion RMB through its wholly-owned subsidiary, while external investors contributed the remaining 625 million RMB. Additionally, Hangzhou Jingtong and its affiliated funds have secured a one-time option to invest an additional 500 million RMB under the same terms before December 31, 2026. Should this option be fully exercised, Mahe Xin Technology’s post-investment valuation is projected to reach 17.1 billion RMB (approximately $2.36 billion USD).
Following this financing, Li Auto is expected to maintain a controlling stake of approximately 74.01% in Mahe Xin Technology, solidifying its strategic direction in chip development.
In-House Chip Development: A Strategic Imperative
Li Auto’s foray into self-developed chips began with feasibility studies in 2021, leading to the official project launch in 2022. The company assembled a dedicated team of around 200 professionals to drive this initiative. The cornerstone of this effort is the self-developed ‘Mahe M100’ chip, slated for mass production and integration into vehicles by May 2026. Its debut is planned for the upcoming Li L9 Livis model.
The Mahe M100 chip boasts impressive specifications, utilizing a 5nm automotive-grade process and a dynamic data flow architecture. It offers a single-chip computing power of 1280 TOPS and supports 8-channel LPDDR5X memory with a peak bandwidth of 273 GB/s.
Industry Recognition and Current Deployments
According to Shanghai Securities News, Li Auto has hailed the Mahe M100 as the ‘world’s first mass-produced dynamic data flow AI chip,’ reporting an actual operational efficiency exceeding 82%. Notably, the Mahe M100 is already integrated into the recently delivered new Li L9 and L8 models. This achievement signifies Li Auto’s successful realization of a complete, in-house capability spanning from chip architecture design to vehicle front-end integration and delivery.
This strategic move into chip development is crucial for automakers seeking greater control over their supply chains, performance optimization, and the integration of advanced intelligent features within their vehicles. The substantial funding and the progress made by Mahe Xin Technology position Li Auto as a key player in the evolving landscape of automotive semiconductor technology.
