(Yicai Global) Dec. 17 -- Japanese semiconductor manufacturer Renesas Electronics Corp. and car making giant China FAW Corp. are linking arms to produce their own chips for the next generation of intelligent vehicles.

The two companies will build a laboratory in Changchun, northeastern Jilin province where FAW is based, according to a joint statement released yesterday. It will develop electronic control units which control a vehicle’s electrical systems such as autonomous driving, intelligent cockpits, powertrain propulsion and car body functions such as lights and locks. The first set of products will be used in FAW's flagship luxury marque Hongqi.

“I believe our collaboration will drive further development and innovation for China’s automotive industry," said Tomomitsu Maoka, senior vice president of the automotive solutions business unit at Renesas and chairman of Renesas Electronics China.

China’s chip supply has come under threat recently by a series of US sanctions that prevent the sale of US software and hardware to a number of blacklisted Chinese companies. Meanwhile, the quick recovery of the Chinese market from the Covid-19 pandemic has spurred demand, raising concerns that a shortage of chips might disrupt the country’s vehicle production.

“The lab will play an important role in the development and commercialization of ECUs," said Li Dan, vice president of FAW’s R&D center and dean of its Intelligent Connected Development Institute. Renesas and FAW, who have been collaborating since 2006, will strive to bring the ultimate driving experience to end users, he added.

The research facility will leverage Renesas’ automotive processors, which include the RH850 family of microcontrollers, R-Car System-on-Chips as well as power and analog devices, to develop a complete car control platform that meets the industry’s stringent safety and security standards.

Tokyo-based Renesas is among the world's top five car semiconductor manufacturers, alongside Germany’s Infineon Technologies, the Netherlands-based NXP, the US’ Texas Instruments and Switzerland’s STMicroelectronics.

Editor: Kim Taylor