On Tuesday, Toyota Motor Corp and the Denso Corp. auto parts manufacturer said they agreed to set up a joint venture for the development of next generation automotive semiconductors, while the industry moves toward the related and autonomous vehicles.
Denso, a Toyota Group supplier, will own 51% of the new company, while Toyota holds the remainder, companies said in a joint statement.
They said they intend to set up the company in April 2020 with a capitalization of 50 million yen (458,968 dollars) and about 500 employees.
The venture will focus on components such as power modules for electric vehicles and peripheral monitoring sensors for automated vehicles.
Computer power is growing more important as cars increasingly connect to each other, transport infrastructure like traffic lights and just about anything else.
Autonomous driving systems will also need the ability to feel the world around them, to interpret those data, and then to make such decisions as to whether to curb or avoid the right to avoid an obstacle all within a second faction.
The two companies also joined another Toyota group supplier, Aisin Seiki Co Ltd, to set up an autonomous driving center for Tokyo in March last year, called the Toyota Research Institute – Advanced Development or TRI-AD./Investing.com