Li Auto has signed agreements for the first equity financing of its chip business, Shanghai Mahe Xin Technology (MHX Technology), in China. The initial round totals RMB 1.625 billion (about $242 million), including RMB 1 billion from Li Auto and RMB 625 million from external investors. The company puts MHX Technology’s post-money valuation at RMB 17.1 billion, or about $2.5 billion, if an additional subscription option is fully used.
Hangzhou Jingtao, Lanchi Ventures and Huaye Tiancheng are leading the external investment, with MiraclePlus also participating. Hangzhou Jingtao and affiliated funds may subscribe for up to another RMB 500 million by December 31, 2026. Li Auto will retain control of the subsidiary and continue including its financial results in its own accounts. If both employee incentive plans are fully allocated and the extra subscription is exercised, Li Auto is expected to hold 74.01%, external investors 6.58%, and incentive-plan entities 19.41%.
The proceeds are intended to fund chip development and commercialization. MHX Technology plans to serve customers beyond Li Auto’s vehicle business, offering products and partnerships across chips, domain controllers and operating systems. Li Auto says broader applications could help the unit build scale and become another growth engine alongside its EV operation.
The business’s M100 driver-assistance chip uses a 5-nanometer automotive process and is rated at 1,280 TOPS; it is already used in the automaker’s latest production vehicles. The financing follows Nio’s earlier funding of its chip subsidiary, while Xpeng has also developed an in-house driver-assistance chip and supplies it to Volkswagen vehicles in China.