Denso and Toyota establish joint venture for next-generation, in-vehicle semiconductors

Jul 11, 2019

Denso and Toyota Motor Corporation today agreed to establish a joint venture for research and advanced development of next-generation, in-vehicle semiconductors. The two companies will study the details and aim to establish the new company in April 2020.

According to Denso, electronic controls have been increasingly implemented into vehicles and the number of in-vehicle semiconductors has also grown. Denso and Toyota are hoping to create a future of mobility that is safe and sustainable and in order to do so will develop next-generation semiconductors that are integral to technology such as connected cars, automated driving, sharing mobility and electrification.

In June 2018, Denso and Toyota agreed to consolidate the electronic components production and development functions to Denso. Based on this agreement, they have been working to achieve a  competitive production and development system.

Denso has decided to establish the new company for research and advanced development of in-vehicle semiconductors, and will establish a stronger system for R&D of semiconductors. It has also agreed to accept equity participation from Toyota for the new company to accelerate the speed of development by taking full advantage of Toyota’s knowledge from a mobility viewpoint. Through equity participation in the new company, Toyota will achieve further innovations by introducing new semiconductor technologies from the planning phase when developing its mobility services and vehicles.

The new company will conduct advanced research on the basic structure and processing method of next-generation semiconductors and develop electronic components by implementing semiconductors, such as power modules for electric vehicles and periphery monitoring sensors for automated vehicles, thereby contributing to creating the future of mobility.