Freescale Semiconductor and Chery Automobile have agreed to develop electronics technology for use in the Chinese automaker’s vehicles, a senior executive with the chipmaker told a news agency.
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The companies will develop chips, software and other parts for engines, dashboard electronics, in-vehicle entertainment systems and more, Henri Richard, Freescale’s chief marketing and sales officer, told Reuters.
“It’s clear that today, with China being the second-largest (auto) market in the world and growing much faster than the No. 1 market (the United States), we have to pay great attention to what’s happening in that country,” Richard said.
“We’ve been working hard at developing our footprint in the China market the last few years.”
The collaboration will involve developing the technology for hybrid vehicles and increasing fuel efficiency across Chery’s car lineup, Freescale executives told Reuters.
Richard said the chipmaker, which plans to formally announce the Chery deal on Monday, expects to increase auto-related semiconductor unit sales at double-digit rates, building on a February deal to supply chips for hybrid vehicles to General Motors.
The news agency noted that privately held Freescale dominates the market for the specialised computer chips used to control vehicle powertrains. Auto-related chip sales represented more than a third of its $5.72bn in sales last year.
Reuters noted that, in 2006, semiconductor content per vehicle in China averaged US$113, compared with $302 in North America, according to market research firm Strategy Analytics. Those numbers are expected to rise to $184 and $402, respectively, by 2014.
Freescale has supplied Chery for over three years, the report added.
