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China's Xpeng says no impact from US curbs on its Turing AI chip output
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China's Xpeng says no impact from US curbs on its Turing AI chip output
Nov 20, 2024 7:15 PM

Nov 19 (Reuters) - Chinese electric vehicle maker Xpeng ( XPEV )

said mass production of its Turing self-designed

artificial intelligence chip was progressing well, dismissing

concerns it could be hit by new U.S. curbs on advanced

semiconductors for Chinese firms.

The U.S. Department of Commerce ordered Taiwan Semiconductor

Manufacturing Co ( TSM ) to halt shipments of advanced chips

to Chinese customers earlier in November for AI applications,

Reuters reported.

Asked by an analyst on a post-earnings call on Tuesday

whether Xpeng's ( XPEV ) autonomous driving chips could be

affected by this, Vice President Charles Zhang said they had not

seen any impact.

"The mass production of our Turing SOC is still progressing

well and we haven't seen any impact on our development of the

Turing SOC," Zhang said, referring to system-on-chip.

Xpeng ( XPEV ) unveiled the Turing AI chip on Nov. 6 and proclaimed a

high-power performance that can support its advanced assisted

driving system with large AI models similar to Tesla Inc's ( TSLA )

Full-Self Driving.

Xpeng's ( XPEV ) peers such as Nio, BYD and

Xiaomi ( XIACF ) have also been developing their self-designed

chips for autonomous driving cars as they race to take on Tesla

ahead of the roll-out of FSD in China, which is expected in the

first quarter of 2025.

Xpeng ( XPEV ) expects fourth quarter revenue between 15.3 billion

yuan and 16.2 billion yuan ($2.11 billion-$2.24 billion),

compared with analysts' average estimate of 14.77 billion yuan,

according to data compiled by LSEG.

It is seeing a steady demand for its MONA M03 mid-sized

sedan, having delivered more than 10,000 units for the second

straight month in October. Xpeng ( XPEV ) expects to deliver between

87,000 and 91,000 vehicles in the fourth quarter, up 44.6% to

51.3% from a year ago.

The Chinese automaker also said it would launch four new

models in 2025, including an extended range hybrid, the first of

such cars for Xpeng ( XPEV ).

The company sold 15% of its total EVs outside China in the

third quarter and expected the pace to continue next year.

Revenue for the third quarter ended Sept. 30 was 10.10

billion yuan, beating estimates of 9.77 billion yuan.

Xpeng's ( XPEV ) shares in Hong Kong fell 1.44% on Wednesday, and

have lost 9.7% so far this year.

($1 = 7.2419 Chinese yuan renminbi)

(Reporting by Rishi Kant and Jaspreet Singh in Bengaluru;

Editing by Muralikumar Anantharaman)

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