Beyond EVs: How BYD's semiconductor and electronics divisions power its global ascent

Time of India

5 hours ago

Tesla
CEO Elon Musk remarked in early 2024 that Chinese carmakers could 'demolish' global competitors if trade barriers didn't exist—a candid admission highlighting the intensifying pressure from players like
BYD
, which are aggressively scaling their global presence.
In a world racing toward electrification, the spotlight often lands on Tesla or Western
EV
policies. Yet behind that glare lies a growing ecosystem quietly built in China. At the heart of this transformation is
BYD Electronics
& Semiconductors, a division of BYD Group that rarely seeks attention but wields growing influence across automotive, consumer electronics, and semiconductor supply chains.
For the casual observer, BYD is best known as an EV powerhouse. It surpassed Tesla in global EV sales in late 2023 and continues to dominate the Chinese market—the world's largest. But this visible success is underpinned by a more fundamental strength: BYD's ability to build much of what it uses — from power modules and sensors to displays and chipsets. That capability resides within BYD Electronics and its semiconductor offshoot.
Sanjeev Keskar
, CEO of Arvind Consultancy and former MD of Arrow India, noted, 'The way Chinese companies are building self-reliance for China is something to watch out for. Going forward, it will be interesting to see if global automotive Tier 1 suppliers begin adopting BYD's semiconductor products.'
An origin story rooted in scale
BYD Electronics began in 1995 as a mobile phone component manufacturer and was publicly listed in 2007. Its growth has been marked by steady vertical integration, supplying top-tier firms such as Apple, Samsung, and Huawei, as reported by
Nikkei Asia
in 2023. The company manufactures handset frames, PCBs, and complete device assemblies for these brands.
Its evolution coincided with BYD Group's shift toward EVs. Rather than rely on external supply chains, BYD chose to internalize key technologies — enabling seamless integration of onboard chargers, infotainment units, and silicon chips.
In 2023, BYD Electronics reported revenue of CNY 107.2 billion (~USD 15 billion), with 20% year-on-year growth and a net profit of CNY 1.86 billion, according to filings on the Hong Kong Stock Exchange (HKEX).
PVG Menon, Advisor at ESDM India, commented, 'This is not to take away from BYD's hard work and innovation. But such success from a vertically integrated product company is atypical and could not be achieved without abundant patient capital and an aggressively supportive government policy.'
Semiconductors: From strategy to self-reliance
Much of BYD's strategic advantage comes from
BYD Semiconductor
, spun off in 2020. It was born of the same philosophy underpinning much of BYD's success: vertical integration.
Key products include IGBT (Insulated Gate Bipolar Transistor) modules and SiC (Silicon Carbide) power devices — both vital for EV powertrain systems. By 2021, BYD was producing 100,000 wafers per month and had shipped over a million IGBT modules, according to company announcements.
Its 1200 V/1040 A SiC module, launched in 2022, enabled BYD to commit to using SiC technology across all future EV models — boosting energy efficiency, charging speeds, and battery longevity, as noted by Yole Développement in 2023.
Leadership at home, ambitions abroad
China's automotive chip market is hotly contested. According to IHS Markit and IC Insights, BYD Semiconductor held a 19–20% market share in IGBT modules in 2023 — second only to Infineon (~27%). Some recent reports even suggest that BYD has overtaken Infineon in the Chinese market, though ET Manufacturing could not independently verify those claims.
A key enabler of this growth is BYD's captive vehicle production. With over 4.27 million EVs sold in 2024, as noted by the China Association of Automobile Manufacturers (CAAM), its internal demand drives scale for its chip operations — a model of alignment that Indian firms could draw lessons from.
Much like Tesla's open-source charging standard, BYD is now selling its modules, displays, and chips to other OEMs. Its USD 2.2 billion acquisition of Jabil's China manufacturing unit — reported by Reuters in August 2023 — expanded its EMS (electronics manufacturing services) reach across smartphones and IoT devices.
Menon added, 'China has diligently pursued an integrated and holistic approach to developing leadership in critical technologies. This is a great proof point of that success.'
This cross-pollination across product categories — from EVs to consumer electronics — enables BYD to operate a resilient, multi-sector manufacturing infrastructure.
Different than India
India's semiconductor strategy, backed by PLI schemes and over USD 10 billion in incentives, focuses primarily on building fab capacity. In contrast, BYD's approach offers a different blueprint: start with real product demand, integrate vertically, and let volume economics drive chip manufacturing — a point highlighted in multiple McKinsey and Brookings reports on industrial policy.
For Indian OEMs like Tata Motors, Ola Electric, and Hero MotoCorp, and component makers like VVDN,
Sona Comstar
, and Dixon, BYD's model may offer a compelling alternative — one that blends chip design with end-product control.
That said, BYD's journey isn't without hurdles. The proposed IPO for its semiconductor arm on Shanghai's STAR Market was delayed in 2021, as reported by the South China Morning Post, amid tighter regulatory scrutiny. Additionally, BYD continues to rely on older 4–6 inch wafer nodes, which may limit performance compared to competitors adopting 8-inch platforms, according to TrendForce in 2023.
Nevertheless, its momentum is hard to overlook. New facilities in Brazil, Hungary, and Southeast Asia — and reported plans for Mexico and Thailand (Nikkei Asia) — signal a growing global EMS ambition, with semiconductors and electronics playing an increasingly central role.
In India, BYD is often seen through a narrow lens — focused on its electric buses or early EV forays. But to truly understand its scope, one must look beyond the vehicles — to the chipsets, modules, displays, and control systems it builds largely in-house.