Denso to increase stake in Renesas in $1bn deal, focus on automated driving systems

Toyota affiliate, Denso Corporation, announced last week on its global website that it has decided to increase its shareholding in Renesas Electronics Corporation by 4.5 per cent in a deal worth US$800 million (A$1 billion) to accelerate the development of various in-vehicle systems including automated driving systems that are becoming more advanced, complicated, and larger in scale than ever before. Renesas has cutting-edge technologies for semiconductors that serve as the key devices in such systems.

Denso has been increasing its research and development of new technologies that include those of “connected cars”. This is because, according to Denso, recently, in order to meet the needs of complicated vehicle control, the functionality of in-vehicle microcontrollers has been increasing. Denso believes that this is causing their design and manufacturing processes to be more difficult. Manufacturers are expected to accelerate the development of new semiconductors for diversely advanced systems for automated driving, electrification, IoT, and connected driving through a combination of communication and AI-related technologies.

By taking full advantage of its knowledge of in-vehicle products acquired through many years of operation, and in order to develop competitive vehicle control systems in new fields such as automated driving, the company considers it essential to further enhance collaboration with semiconductor manufacturers that have profound experience and expertise.

Renesas is a top supplier of in-vehicle microcontroller and has Renesas autonomy (a trademark of Renesas) to offer complicated and advanced technologies as an open platform. Its basic growth strategy is to offer comprehensive solutions from cloud services that contribute to automated driving, sensing, and vehicle control. Denso will continue the joint development with Renesas and accelerate the development of technologies to create competitive in-vehicle systems.

Denso will strengthen and expedite the development of technologies focusing on safety for automated driving and connected vehicles, and on the environment through electrification in order to offer new value to mobility of the future.

Leave a Reply