Li Auto Funnels CN¥1.6bn Into Chip and Domain Controller Arm

Li Auto is doubling down on the silicon and computing hardware that sits at the heart of its vehicles. The Chinese automaker’s chip and domain controller business, operating under the name Shanghai Mahe Xin Technology (MHX Technology), has pulled in CN¥1.625bn (roughly US$241m) through a round of equity financing agreements.

The bulk of that cash comes from home. Li Auto itself is putting CN¥1bn (about US$149m) into the unit via a wholly owned subsidiary, while a group of outside backers — Hangzhou Jingtao, Lanchi Ventures, Huaye Tiancheng and MiraclePlus — are together contributing CN¥625m (around US$93m).

Domain controllers are the centralized computing hubs that manage a vehicle’s various functions, and MHX Technology was set up as the dedicated home for both that work and Li Auto’s in-house chip development. According to Li Auto, spinning the operation into its own platform gives it room to chase broader industrial opportunities — including applications outside the automotive world — while benefiting from greater economies of scale.

Control stays firmly with the parent company. Li Auto said it will continue to consolidate MHX Technology’s financial results, and one Hangzhou Jingtao-linked investor has been handed a one-off option to inject as much as CN¥500m (about US$74m) more by the end of 2026, at the same valuation as the main round. The unit will also roll out two share incentive plans aimed at employees and key contributors.

Should those incentive plans be fully drawn down and the extra investment right exercised in full, Li Auto’s stake would land at roughly 74.01%. External investors would hold about 6.58%, with the incentive plan entities accounting for 19.41%. The proceeds are earmarked for research, development and commercialization at MHX Technology, with completion of the agreements still subject to customary closing conditions. The move fits a wider push among Chinese automakers to bring more of their computing stack in-house as software-defined features become a competitive battleground.