Chinese EV LiDAR Chip Demand Surges on ADAS Race

EV LiDAR

Chinese EV LiDAR chip demand is accelerating as ADAS becomes a mainstream differentiator in China. Chinese EV LiDAR chip demand expanded with EVs exceeding half of new sales in 1H25. Therefore, Chinese EV LiDAR chip demand will keep rising as LiDAR extends beyond premium models. LiDAR, radar, and cameras now scale across mid-range vehicles. Premium 1,550nm systems lift semiconductor intensity per car. Meanwhile, 905nm GaAs units remain cost leaders for mass ADAS.

Materials Impact: Gallium, Indium, Germanium and InP

LiDAR growth raises near-term gallium needs through 905nm GaAs emitters. However, 1,550nm adoption pulls indium and phosphide demand via InGaAs and InP lasers. Germanium also gains in SiGe receivers and select SWIR optics. Silver telluride could appear in photodetectors, from a low base. As a result, upstream pricing power may shift to high-purity minor metals and epitaxial wafers. Apparent adoption reached 17% of Chinese EVs by June. Unit growth will compound material consumption through 2026.

Supply Chain and Capacity Ramp Inside China

RoboSense surpassed one million automotive LiDAR units by June. Hesai installed new lines and targets two million units a year by end-2025. The firm won designs on 20 models for 2026 launches. BYD will deploy God’s Eye ADAS across all new models. Two variants include LiDAR for wider feature access. Pony AI’s seventh-generation Robotaxi uses four Hesai AT128 sensors per car. Each unit integrates 128 VCSELs, using InP, GaAs, or GaN. GlobalFoundries reports 36% automotive growth and pursues “China for China.” That strategy supports local ADAS, laser drivers, and radar SoCs.

The Metalnomist Commentary

LiDAR’s shift from flagship to mainstream rewrites the automotive semiconductor bill. Watch 1,550nm penetration; it will set the slope for InP and InGaAs demand. Export permits and wafer capacity could become the hidden bottlenecks in 2026.