CATL to launch automotive chip venture Tongxin Micro

CATL and Unigroup Guoxin Microelectronics have formed a new automotive chip company, Tongxin Micro Technology, in Beijing.

Tongxin Micro, a subsidiary of Guoxin Micro, holds a 51% stake after investing 153 million yuan (US$21.8 million), while CATL’s Wending Investment owns 5% with a 15 million yuan investment (US$2.1 million).

Four stock platforms tied to Tsinghua Unigroup own a combined 24% stake.

Tongxin Micro Technology will acquire Tongxin Micro’s automotive domain controller chip business for 193 million yuan (US$27.5 million).

Guoxin Micro said the new venture allows it to share investment risk with partners.

🔗 Source: South China Morning Post

🧠 Food for thought

Implications, context, and why it matters.

Tongxin Micro auto chip outlook is unclear

The piece names Tongxin Micro Technology, a JV, but leaves out details on its domain controller chips (centralized processors that manage driver assistance and infotainment). It cites the 2025 launch of THA6206, China’s first Arm Cortex-R52+ Automotive Safety Integrity Level D (ASIL D) microcontroller unit (MCU) 1. The article gives no process nodes, foundry partners (contract chip manufacturers), or original equipment manufacturer (OEM) design wins.
The acquired business carries a 3,723% appraised appreciation 2. With no data on production, customers, or auto-chip revenue and with Guoxin Micro’s 15.05% revenue growth 3 being company-wide investors cannot judge momentum. Shareholders tracking CATL and Guoxin Micro remain unsure about the JV’s materiality or returns.

Domain controller surge aids suppliers

China’s autonomous driving domain controller penetration in passenger cars passed 30% in June 2025, up from 17.43% a year earlier 4. The rise lifts demand for AUTOSAR (AUTomotive Open System ARchitecture) platforms and ISO 26262 functional safety. Neusoft Reach (a China-based automotive software supplier) adapted its NeuSAR AUTOSAR platform to Tongxin Micro’s THA6 chips 5.
Centralized electrical/electronic (E/E) architectures with multi-domain integration, like cockpit-parking and cockpit-driving controllers, hit 438,600 units in 2024 in 20+ models 6. That expands demand for automotive-grade packaging and test gear. Suppliers with automotive-qualified intellectual property (IP), cybersecurity modules aligned with EVITA-Full (an automotive cybersecurity certification profile) 1, or high-bandwidth interconnects can gain. BYD, Geely, and SAIC will scale domain controller deployments through 2026.