Denso Invests $800 Million in Chipmaker Renesas
【Summary】In order to develop autonomous vehicle technology, Denso, a Toyota affiliate, recently announced it will purchase Renesas Electronics.
Remember when Denso was best known for spark plugs? Like many other companies, the supplier is now looking towards a self-driving, connected future. That's why it recently committed to buying $800 million worth of stake in chipmaker Renesas Electronics.
Toyota and Denso, Dedicated to a Self-Driving Future
Toyota has made its commitment to autonomous cars very clear. The company recently announced it will create a new branch, called Toyota Research Institute-Advanced Development. This venture, which focuses on self-driving cars, will cost a cool $2.8 billion.
So, it comes as no surprise that Denso, Toyota's affiliate and supplier, wants to invest more in Renesas Electronics. Renesas is one of the leading providers of processors for autonomous cars.
Denso is buying shares of Renesas from Innovation Network of Japan (INCJ). INCJ currently owns 50.1 percent of the electronics company. Initially, INCJ took 69.2 percent of Renesas as part of a recovery plan, when an earthquake crippled automotive supply chains in 2011. INCJ now aims to sell off all of its stakes in the chipmaker by 2025.
Although the terms of the deal have not been disclosed, estimates show the transaction between Denso and INCJ to be worth about $800 million. This assessment is based on Renesas' current share price. Since Denso already owns stake in Renesas, the deal will increase the company's share by 5 percent, while dropping INCJ's down to 45.6 percent.
Denso Hopes to use Renesas Chips in its New NSITEXE Division
In a statement, Denso said it is "essential to further enhance collaboration with semiconductor manufacturers that have profound experience and expertise" to develop vehicle control systems in automated driving and other new fields.
Last year, Denso proved this statement to be true by setting up a company called NSITEXE to design electronics for automated driving. Currently, the company is working on a processor that can analyze the large amounts of data self-driving cars need. The hope is that Renesas can produce chips based on Nsitexe's design.
From spark plugs to microprocessors – Denso has certainly come a long way.
Mia is an ASE Certified Master Automobile Technician, L1, L2 and L3 Advanced Level Specialist. She has over 12 years of experience in the automotive industry and a bachelor’s degree in automotive technology. These skills have been applied toward content writing, technical writing, inspections, consulting, automotive software engineering.
Tesla Model S Wagon Displayed in Geneva
Audi Reveals its Q4 e-tron Concept at the Geneva Motor Show
Goodyear Showcases Concept Tire for Flying Cars; 1950's Autonomous Vehicle
Kia to Premier Euro-spec Electric e-Soul at the Geneva Motor Show
Ford Developing Electric Mustang Crossover That CEO Says Will “Go Like Hell”
BMW to Premiere New Plug-in Hybrid Vehicles & Free EV Charging in Geneva
Honda Says EVs, Not Brexit, to Blame for Honda Plant Shutdown
EVgo Charging Network Powers 88% More EVs Than Last Year
- Tesla is Planning to Use Cobalt-Free Batteries for its Electric Vehicles Built in China
- Didi Chuxing to Trial Luxury Ride-Hailing Service with Tesla & Mercedes Benz Vehicles
- Tesla's Model Y is Now Available to Order Online
- Here’s What You Need to Know about the Porsche Taycan’s Battery, Suspension & More
- Chinese Electric Vehicle Startup Xpeng Motors Raises $400 Million in Series C Funding
- VW’s Audi to Cut 10% of its Workforce to Fund Shift Towards Electric Vehicles
- Tesla Says the Model Y Will Be Launched Ahead of Schedule in Early 2020
- Hyundai S-A1 Flying Taxi Could Help Uber Go Airborne by 2023
- Uber, Distracted Driver Cited for Fatal Crash in Arizona Claims NTSB
- California's State Assembly is Pushing a Bill to Speed Up the Construction of New EV Charging Sites