The two companies, which announced a smart car alliance in November, have reportedly been working informally on chips for the past few months.
Huawei and Chang’an’s new chip partnership will come to fruition in the global semiconductor shortage.
Huawei Technologies of China has expanded its smart car partnership with the state-owned Chongqing Changan Automobile Co Ltd to include the design and development of semiconductors for use, four sources with knowledge of this issue said. The two companies, which announced a smart car alliance in November, have been working informally on chip development for the past few months, two sources said. A third source said it could soon form a joint venture for chip development.
Chang’an’s share price soared in the news, rising 8.5% compared to a 4% drop at the beginning of the day. Huawei has shifted its focus to electric vehicles after the global smartphone business has been hit by US sanctions. The former Trump administration has labeled the company as a threat to US national security-accusations it denies.
In addition to a contract with Chang’an to develop a smart car under an unnamed brand, Huawei is planning an EV under its own brand and is in talks to manage the EV unit of a domestic small car maker. ..
Huawei’s new chip partnership with Chang’an will come in the midst of a global semiconductor shortage that has hit automakers in particular.
Huawei’s chip business will also grow significantly after US sanctions lose access to the underlying chip design software needed for more sophisticated chips used in smartphones.
The source refused to be identified because they were not allowed to speak to the media.
Chang’an did not respond to the request for comment. Huawei said it would leave it to the automaker in a public announcement about the alliance. Battery maker CATL, which is also part of the smart car partnership, also declined to comment.
In addition to manufacturing private cars, Changan Automobile has partnered with Ford Motor Company and Mazda to develop its own chips, but hasn’t made much progress, two sources said.
Huawei’s smart car partnership between Huawei and Chang’an requires automakers to design and engineer vehicles, while high-tech giants will be responsible for vehicle operating systems and cabin technology.
According to two sources, the partnership will compete with Tesla and Nio to manufacture cars targeting the mid-to-high-end market.
They added that the business is no longer active and will be housed in an old venture with Nio, who was renamed Avatar.
According to one source, the two companies are aiming to launch sales early next year. Another source added that Avatar will open an office in Shanghai and begin hiring staff.
Changan Automobile said on Friday that Avatar could be released on a Q & A service for investors managed by the Shenzhen Stock Exchange.
Earlier this week, sources told Reuters that Chang’an would list an EV unit separate from Avatar on the Nasdaq-style star market in Shanghai. Chang’an did not respond to the request for comment.
(This story has not been edited by NDTV staff and is automatically generated from the syndicate feed.)
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Huawei expands smart car partnership to manufacture semiconductors: Report
Source link Huawei expands smart car partnership to manufacture semiconductors: Report