Several industry sources told 36Kr that Momenta has powered on its self-developed assisted driving chip and begun in-vehicle testing. According to people familiar with the matter, the chip is benchmarked against mainstream processors, including Nvidia’s Orin X and Qualcomm’s 8650.
“Even its hardware interfaces are similar to Qualcomm’s 8650,” one insider said. As a result, Momenta’s chip requires minimal PCB (printed circuit board) changes, enabling rapid mass production and integration into vehicles.
Momenta began developing the chip in 2023, recruiting senior talent from Zeku, the now-defunct chip design arm of Oppo. Leading the effort is former Zeku COO Li Zonglin.
Now that the chip has entered initial silicon bring-up, it has passed basic performance tests. If subsequent testing proceeds smoothly, volume production will follow. This would position Momenta alongside Horizon Robotics as a provider of integrated software and hardware solutions for assisted driving.
Scaling up amid chip cost pressures
Beyond its chip progress, Momenta is also expanding its financing and international footprint. 36Kr has learned that the company is working on projects for IM Motors’ export programs in Germany, the UK, Thailand, and Australia. IM’s Germany program is nearing production, and a robotaxi test vehicle developed with Uber is already operating in Munich.
Like many automakers developing their own chips, Momenta appears motivated more by strategic necessity than market opportunity. Its software background likely informs a focus on chip efficiency. In-house silicon offers opportunities for cost savings compared with buying general-purpose chips from external suppliers.
However, scale is essential to realizing those savings, and the company must bear significant upfront costs. In May, CEO Cao Xudong said Momenta reached 100,000 vehicles running urban navigate-on-autopilot functions by August last year. The second tranche of 100,000 came by February, and the third by May.
As 36Kr previously reported, Nio, Li Auto, and Xpeng have each spent roughly USD 300–400 million on in-house chip development. Leapmotor CEO Zhu Jiangming has taken an even more aggressive view, arguing that only when deliveries reach two to three million vehicles can chip R&D costs be fully amortized.
Even so, the high cost of outsourced chips is forcing automakers and tech firms to take the plunge. Nvidia’s Orin X reportedly costs about USD 380 per unit in volume purchases. A standard urban assisted driving stack now costs only a five-figure RMB sum, with the chip accounting for nearly 30%.
According to sources, Momenta plans to price its own stack at around RMB 5,000 (USD 700) or less.
Efficiency in development is another driver. Without control over chip design, Momenta’s software must conform to generic hardware constraints. This lack of co-design can limit performance and delay future updates. Variations across automakers and models further complicate development, increasing R&D costs.
For original equipment manufacturers (OEMs), integrated software and hardware stacks offer better on-vehicle performance and simplified vendor management. These advantages likely influenced Momenta’s decision to invest in chip development even before reaching larger production volumes.
With the chip now powered on, the next milestone is securing more model nominations and accelerating deployment. It took two years to reach the first 100,000 vehicles, five months to add the next 100,000, and only three months for the third. This year, Momenta also secured nominations from BMW, Mercedes-Benz, and Toyota, suggesting it may soon achieve the volume needed to spread fixed costs.
A push abroad and up the autonomy ladder
Momenta’s ambitions extend beyond China and Level 2 autonomy. Overseas expansion and Level 4 autonomy are also priorities. Major shareholder SAIC Motor is once again playing a key role.
In the second half of this year, SAIC’s IM brand will launch the IM L5 and IM L6 in Europe via MG’s channel, with Momenta providing the driving technology. IM’s Germany program is approaching production, while the UK launch is scheduled for September. Future markets include Australia and Thailand.
Industry insiders told 36Kr that when automakers look abroad for driving assistance suppliers, their choices are limited. Bosch is one option. Momenta is another. Horizon Robotics and Huawei are more cautious. Bosch, while strong in compliance, has shifted toward higher-end offerings.
“As a result, Momenta can even secure development fees exceeding RMB 100 million (USD 14 million) on some outbound projects,” one source said.
Level 4 autonomy remains a key focus for Momenta. The company originally pursued a strategy of gathering extensive road test data to simultaneously advance Level 2 and Level 4 solutions. It has since won development contracts from major domestic and international clients.
Momenta previously collaborated with SAIC’s Xiangdao Mobility on a robotaxi initiative, though no public updates have emerged since 2022. In May, it announced a new partnership with Uber to launch robotaxi services outside China and the US. The jointly developed vehicle is already being tested on roads.
If the project launches as planned next year, it could contribute valuable data to Momenta’s development pipeline and enhance its valuation ahead of a potential IPO.
Momenta also entered the driverless trucking space by leading Zeron’s USD 500 million funding round. This move broadens its footprint and brings it closer to a future public listing.
With its chip now operational and overseas programs nearing launch, Momenta is rapidly expanding its commercial reach. Industry sources suggest a public listing could be imminent, signaling a potential turning point for the assisted driving sector.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Fan Shuqi for 36Kr.