Guangzhou Automobile Group (GAC) on Tuesday pushed back against an online claim that “half of the group’s automotive chips will be replaced by Gree products,” calling the formulation circulating on social media inaccurate. The company confirmed that GAC chairman Feng Xingya led a delegation to visit Gree Electric on 15 January to discuss a “people-car-home” smart ecosystem and broader industrial coordination, and said any concrete cooperation would be announced through official channels.
The clarification comes amid separate coverage that Gree Electric has moved its silicon carbide (SiC) chips for automotive use toward mass production and that Gree chair Dong Mingzhu had talked about supplying a substantial share of chips to carmakers. GAC’s statement does not deny talks took place; it simply rejects the specific numerical claim and frames the interaction as exploratory rather than a binding supply deal.
That distinction matters because SiC power semiconductors are a strategic component for electric vehicles: they improve power-conversion efficiency and can materially affect driving range and charging performance. A validated supply relationship between a major consumer-appliance manufacturer such as Gree and a large automaker like GAC would be noteworthy for China’s EV supply chain and for investors tracking industrial diversification.
The episode highlights two broader dynamics in China’s industrial landscape. First, established consumer-electronics and appliance firms have been accelerating moves into automotive supply chains as vehicle electrification expands demand for power electronics. Second, companies and markets remain sensitive to unverified reports; both reputational and financial risks escalate quickly when numbers are floated publicly without contractual confirmation.
For international observers, the case is a reminder that Chinese industrial partnerships increasingly straddle traditionally separate sectors: home appliances, consumer electronics, and automotive manufacturing. A formalised Gree–GAC chip supply agreement would signal deepening vertical integration within China’s EV ecosystem, potentially altering procurement patterns for chips and challenging incumbent specialised suppliers.
For now, the situation remains in the realm of strategic possibility rather than fact. Investors and partners should watch for formal announcements, production capacity statements, and technical certifications for automotive-grade SiC devices before treating the initial claims as a material change in supply dynamics.