Toyota and Japanese automotive parts manufacturer Denso are working together to create a new offshoot company that will build self-driving chips for the automaker’s brands.
Toyota already owns approximately 25 percent of Denso, so it’s been working closely with the company for years. There is no name for the new firm just yet, but Toyota will own 49 percent and Denso will take on the remaining 51 percent — that’s if Japanese antitrust authorities approve the partnership.
If everything goes according to plan, the company will launch in 2020 and make “next-generation semiconductors that are integral to technology innovations, such as connected cars, automated driving, sharing mobility and electrification,” according to a press release from Denso.
The parts manufacturer already manufactures electrical components for vehicles. With the new joint company, Toyota and Denso aim to increase their research and development output.
The two companies estimate that 500 employees will work at the new venture.