Chinese ADAS Provider Momenta Takes the Step to Become an Integrated Software and Hardware Provider

Related Vendors

dataTec AG

Wuxi InfiMotion Technology Co., Ltd.

Momenta, a Chinese provider of ADAS software, is currently testing its own chip. The Chinese company has started testing a self-developed automotive chip in test vehicles on the road, according to the Chinese tech portal 36kr, citing well-informed insiders.

It is a bold move from being a pure software company to becoming an integrated provider of software and hardware for automated driving functions, and this new strategy by Momenta is currently causing quite a stir in the automotive and semiconductor industries. It is believed that competition in ADAS solutions and autonomous driving is likely to intensify for a whole range of other chip manufacturers.

These competitors include international chip manufacturers like Nvidia and Qualcomm, as well as Chinese software providers like Horizon and automakers with their own ambitions to develop car chips. Currently still in the testing phase, if these tests prove successful, Momenta will achieve a milestone for the Chinese chip industry with its transition from a pure software specialist to an integrated provider of hardware and software for automated driving functions. For the first time, an advanced, domestically developed driver assistance chip is entering the final testing phase.

Competition for Nvidia's Orin-X and Qualcomm's 8650

The Momenta processor currently being tested is reportedly capable of achieving performance comparable to Nvidia's established Orin-X platform, according to Chinese industry media. At the same time, the hardware interfaces are said to be modeled after the design of Qualcomm's 8650 chip. This means that automakers would not need to make significant changes to their control units to integrate the Momenta chip and its associated software into their vehicle models.

Momenta began building its own chip team in 2023. The goal was to no longer depend on external hardware, particularly to offer more cost-effective products. At the time, the Chinese start-up brought on numerous developers from the now-defunct OPPO chip subsidiary Zeku, including former Zeku COO Li Zongli. The Momenta chip has reportedly already passed initial functionality tests. If subsequent tests proceed as planned, the chip could be brought to market readiness within one to two years, observers say.

The company expects tangible benefits from its new vertical integration. Dependency on expensive external chips could be avoided. Nvidia's Orin-X chips are expensive and currently account for up to 30 percent of the material costs for a typical driver assistance solution in major Chinese cities.

Aggressive pricing

With its in-house chip, Momenta could potentially reduce the price of such systems for automakers to approximately 5,000 yuan (around 630 euros) per vehicle. This would be half the cost of current popular ADAS solutions in China. Momenta also hopes that its development efforts will become more efficient in the future, as both software and hardware will come from a single source. Finally, such complete packages are also technologically attractive for Momenta's OEM customers. When algorithms and electronics are perfectly tuned to each other, many engineers' experience suggests that the performance of ADAS solutions in vehicles improves significantly over time.

Another advantage for automakers would be that coordination with multiple suppliers would no longer be necessary if there are still issues with either the software or the hardware. This could also save time and costs.

For Momenta, entering the chip business marks a rise to a new league. The company henceforth competes as a complete provider of hardware and software for automated driving, also with Chinese companies like Horizon Robotics. An initial public offering is already planned.

Pressure on industry giants

This significantly increases the pressure on the competition. Western industry giants like Nvidia and Qualcomm suddenly see a new rival from China emerging on the horizon. In the domestic market, the previous top player Horizon, the only independent provider of integrated solutions in this area, faces a challenger on equal footing.

The German supplier Bosch will also have to closely monitor Momenta's advancements. For a long time, the traditional German supplier was one of the dominant providers of driver assistance systems in China. However, international manufacturers in China are increasingly choosing local tech partners. BMW, for example, recently decided to collaborate with Momenta, bypassing its long-standing ADAS supplier Bosch, according to some analysts. This move caused quite a stir even outside of China.

Momenta already counts renowned automotive companies among its customers. General Motors and Mercedes-Benz collaborate with the start-up for their models in China, and in its home country, Momenta is an important supplier for SAIC Motor, which has also invested in the start-up.

If the cost advantages hoped for through the integration of software and hardware by Momenta materialize in the future, many automakers may have to reconsider their strategy regarding in-house car chips. Momenta, which already supplies not only BMW, Mercedes, and Toyota but also leading Chinese automakers like SAIC, could leverage significant scaling advantages. If the road tests of the first Momenta chip successfully lead to mass production, Momenta's rise as a successful supplier of intelligent vehicles is likely to continue. (sb)