Melexis, a Belgian semiconductor supplier, has announced a partnership with Chinese electric vehicle manufacturer NIO. Melexis will provide current sensor chips for NIO’s traction inverter system, which converts a battery’s direct current into alternating current used by an electric motor. These chips will power all of NIO’s battery electric vehicles.
Dieter Verstreken, Vice-President of Melexis’s China Strategy, stated that their current sensor integrated circuits, coupled with the expertise of their local engineers, will support NIO in achieving success in the electric vehicle market.
Semiconductor suppliers like Melexis, facing slower global car sales, are turning to Chinese automakers, many of which are seeking expansion in Europe. This move follows a recent agreement between STMicroelectronics and China’s Geely for long-term Silicon Carbide supply.
In a separate development, Chinese electric vehicle maker Nio reported a wider-than-expected net loss of USD 677 million for the January to March quarter, compared to analysts’ expectations of USD 605.8 million. Vehicle sales fell to USD 1.1 million, a 9 per cent decrease from the previous year and a 45 [per cent drop from the previous quarter, with 30,031 vehicles sold.
However, Nio expects a stronger second quarter, projecting total revenue between 16.59 billion yuan (USD 2.28 billion) and 17.14 billion yuan ( USD 2.36 billion), exceeding analysts’ current estimates of 14.88 billion yuan ( USD 2 billion). Nio’s CEO, William Bin Li, credited the company’s “industry-leading technologies” for its competitive edge in the crowded market.
Nio has recently launched the 2024 ET7 electric sedan and unveiled the Onvo smart EV brand, including the L60 model. The company plans to introduce a new Onvo model annually, targeting larger families, with the goal of boosting sales and increasing profits when monthly sales reach 20,000 units.
Nio has also invested heavily in electric vehicle infrastructure, including charging stations and battery-swapping facilities, to attract consumers and develop partnerships with fellow automakers. As of Thursday, Nio has battery-swapping partnerships with seven companies, including Changan Automobile and Geely.