Chinese EV manufacturer Xpeng plans to deploy its self-developed AI chip, Turing, in its semi-autonomous cars starting this quarter.

The chip is designed to enhance autonomous driving capabilities, supporting full-stack technology, including level 4 (L4) features that allow drivers to take their eyes off the road in designated areas.

Xpeng has not disclosed which EV model will first integrate the chip.

CEO He Xiaopeng expressed hopes for regulatory approval in Hong Kong and other international markets to enable the use of its autonomous driving systems.

Currently, Xpeng’s models, such as the P7 sedan and G6 SUV, offer level 2+ (L2+) semi-autonomous driving, requiring drivers to stay alert.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ The shift from buying to building critical AI chips marks a strategic industry evolution

Xpeng’s development of its own Turing chip reflects a broader industry transition from relying on third-party processors to designing proprietary silicon for autonomous vehicles.

This follows a historical pattern established by tech giants. Tesla developed its Full Self-Driving computer after initially using Nvidia hardware, Google created its Tensor Processing Units, and Apple designed its M-series chips to gain competitive advantages1.

The automotive semiconductor architecture has evolved dramatically, from simple Engine Control Units (ECUs) that first appeared in cars to today’s complex AI-specific Systems-on-Chips (SoCs) designed for the computational demands of autonomous driving2.

For Chinese manufacturers specifically, developing indigenous chips addresses both supply chain vulnerability and the need for specialized hardware optimized for local driving conditions and regulatory requirements3.

Xpeng’s claim that its chip outperforms Nvidia’s Drive Orin X by three times in computing power highlights how custom silicon can be tailored to specific autonomous driving algorithms, potentially creating unique competitive advantages that off-the-shelf solutions cannot match.

2️⃣ Autonomous driving adoption requires navigating complex regional regulatory landscapes

Xpeng’s ambitions for global deployment of its autonomous technology face significantly different regulatory environments across markets, with Hong Kong’s regulatory framework only recently evolving to accommodate more extensive trials of autonomous vehicles4.

Beijing’s new autonomous vehicle regulation, passed in March 2025, specifically balances “development” and “safety” by establishing requirements for L3+ vehicles while mandating the presence of safety personnel during pilot programs – creating a distinct regulatory approach compared to other markets5.

Recent Xpeng developments