Toyota and Denso Partner to Setup a New Joint Venture

Japan’s Toyota Motor Corp and Denso Corp, an automotive parts manufacturer, have collaborated to build next-gen semiconductors, Reuters reported. The partnership comes at a time when the automobile industry is shifting towardsthe development of self-driving and connected vehicles.

According to the joint venture, Denso will have control over the new company by 51 percent, while, Toyota will control the remaining share. The new company is aimed for a 2020 debut with a total employee of 500. The capital for the venture is estimated to be $458,968.

The joint venture will exclusively co-develop components such as periphery monitoring sensors for automated vehicles and power modules for EVs.

As cars increasingly become connected to each other, computing power is becoming an vital weapon.

Self-driving systems should be capable enough to sense the surroundings, read the data, and then decide on taking certain steps such as applying brake or veer to the right to avoid an obstacle for example, all within less than a second.

Both the companies joined hands in 2018 to combine their electronic components manufacturing and development at the supplier in a move to improve efficiency and speed up innovation.

Aisin Seiki Co Ltd, another automotive component maker collaborated with Toyota and Denso to establish a development unit for self-driving vehicles in Tokyo in 2018.  The name of the unit is Toyota Research Institute - Advanced Development