If it's like the FM chip on the Android phones, it's analog FM only. As a broadcaster I would love to see it support HD Radio, but I don't think that will happen due to licensing requirements (which is a different rant altogether that doesn't pertain to this forum)
No it’s not that. Australia has had some form of digital radio broadcasting for years, but I think uptake is slow. See:
https://en.m.wikipedia.org/wiki/Digital_radio_in_Australia
I use my mobile data for radio but I’d certainly prefer to save data and access equivalent quality digital radio for free if it was an option.