Li Auto has announced that its chip subsidiary, Shanghai Mach Technology, has signed its first equity financing agreement, raising 1.625 billion yuan (about $229 million), according to Chinese automotive outlet Gasgoo.
The round was led by Hangzhou Jingtao, Lanchi Ventures and Huaye Tiancheng, with MiraclePlus also participating. Hangzhou Jingtao and its affiliated funds received an additional subscription right of up to 500 million yuan, and if fully exercised, the post-investment valuation would reach 17.1 billion yuan (about $2.4 billion).
The funding will support Mach Technology's continued chip research and commercialization, with a particular focus on non-automotive applications, advancing Li Auto's long-term development in chips and domain controllers.
Li Auto said it is building full-stack technical capabilities for on-device AI through the co-design of algorithms, compilers, operating systems and chips, starting from AI inference needs. The company's self-developed Mach M100 chip is described as the world's first dynamic dataflow AI chip, manufactured on a 5nm automotive-grade process with a single-chip computing power of 1280 TOPS.
From architecture to production
The Mach M100 has already been installed in Li Auto's latest production models, marking the transition from original architecture to mass production and laying the foundation for scaling the chip business.
Li Auto will retain a 74.01% stake in Mach Technology, maintaining its controlling position. The company said this allows it to leverage synergies across chips, models and vehicle development, accelerating the conversion of technological innovation into user experience and supporting continuous chip optimization through production practice.
Looking ahead, Mach Technology will rely on its full-stack technology and product system spanning chips, domain controllers and operating systems. While serving Li Auto's products, it aims to expand supply and cooperation with external customers, extending its business into applications beyond automobiles.
By serving a broader customer base, Mach Technology expects to realize economies of scale, continue research and product iteration, and grow its chip and domain controller business into a second growth curve alongside Li Auto's premium intelligent EV operations.
