Li Auto chip unit raises RMB 1.625 billion in Series A round
- Li Auto's chip unit, MHX Technology, raised RMB 1.625 billion in its first financing round.
- Li Auto contributed RMB 1 billion, maintaining a 74.01% controlling stake in the subsidiary.
- The Mach M100 chip, built on a 5nm process, is already in mass production for Li Auto vehicles.
- Hangzhou Jingtao holds an option to invest an additional RMB 500 million by the end of 2026.
- The company plans to expand its chip and domain controller business into non-automotive sectors.
Li Auto’s chip subsidiary, MHX Technology, signed a first-round equity financing agreement for RMB 1.625 billion on Friday. The company, also known as Shanghai Mahexin Technology Co., Ltd., raised the capital to support chip development and commercialization. This funding provides the capital necessary to expand the company’s operations as it builds out its proprietary AI chip business.
Investment structure and potential valuation of RMB 17.1 billion
Li Auto contributed RMB 1 billion to the financing through a wholly-owned subsidiary, while external investors provided a combined RMB 625 million. Hangzhou Jingtao and its affiliated funds hold a one-time right to invest up to an additional RMB 500 million by December 31, 2026. This additional subscription right is priced at the same rate as the initial round.
The post-investment valuation of the subsidiary will reach RMB 17.1 billion if the additional subscription right is exercised in full. This valuation represents the total worth of the company following the combined investment.
Li Auto retains 74.01% stake and control of subsidiary
Li Auto retains a 74.01% stake in MHX Technology and continues to control the company following the financing. The subsidiary allocated 20% of its equity for an employee incentive program. MHX Technology will adopt two share incentive plans to provide compensation for employees and key contributors.
The company expects that Li Auto, the investors, and the entities administering the incentive plans will hold approximately 74.01%, 6.58%, and 19.41% of the equity, respectively. This distribution assumes the full utilization of the incentive plans and the full exercise of the subscription rights.
Mach M100 chip enters mass production for Li Auto vehicles
The Mach M100 chip entered mass production in May 2026 and is built on the TSMC N5A 5-nanometer automotive-grade process. It features a dynamic dataflow architecture and delivers 1,280 TOPS of computing power per chip, or 2,560 TOPS in a dual-chip configuration. The chip is currently integrated into new Li Auto models, including the L9, L8, and Li MEGA.
Li Auto describes the Mach M100 as the world’s first mass-produced AI chip for dynamic data streams, with an operational efficiency exceeding 82%. The chip’s architecture was accepted by the industry track of ISCA 2026, marking a first for an automaker. The M100 uses 8-channel LPDDR5X memory with a peak bandwidth of 273 GB/s.
The company now completes the production chain from chip architecture design to vehicle-integrated delivery. The M100 takes the chip from an original architecture into series-production applications.
Strategic expansion into non-automotive sectors
MHX Technology intends to leverage its chip and domain controller technology to expand into non-automotive industrial sectors. Li Auto developed a full-stack edge AI platform by coordinating the design of algorithms, compilers, operating systems, and chips. The investment also supports development for blockchain innovation.
Li Auto President Ma Donghui said on September 21 that standardized components such as Mach chips and silicon carbide modules could be sold to other automakers to spread research and development costs. The company aims to develop these operations into a second growth business alongside its premium electric-vehicle sales.
Investor list and industry context
The financing round was led by Hangzhou Jingtao, Huaye Tiancheng, and either BlueRun Ventures (news.metal.com), Lanchi Ventures (autonews.gasgoo.com), or Bessemer Venture Partners (kucoin.com), with MiraclePlus participating. Bessemer Venture Partners and Qijing Chuangtan also participated in the round.
In February, NIO’s chip subsidiary, GeniTech, completed its first financing round of RMB 2.257 billion with a post-money valuation of nearly RMB 10 billion. Following that round, NIO retained a 62.7% stake, external investors held 27.3%, and 10% was reserved for equity incentives.
Development history and operational risks
Li Auto began evaluating the feasibility of developing its own chips in 2021 and officially launched the project in 2022 with a team of about 200 people. The subsidiary faces execution risks regarding external customer adoption, supply scaling, talent shifts, and margin recovery. Completion of the financing remains subject to customary closing conditions.
Frequently Asked Questions
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