China鈥檚 1st auto chip venture for green cars
Print Edition
NXP Semiconductors and Chinese partner Datang Telecom Technology set up China’s first automotive semiconductor joint venture yesterday.
Datang NXP Semiconductors, 51 percent owned by the Chinese firm, will focus on developing solutions for new-energy cars, including power management chips that can boost the car’s maximum mileage by 30-40 percent but won’t increase manufacturing costs.
The short distance that electric cars can travel is one of the major hurdles to their sales and popularity. If the range can be extended, sales of electric cars will surge, said Kurt Sievers, executive vice president of NXP Semiconductors, which is the biggest automotive semiconductor supplier in China.
Jiangsu-based Datang NXP Semiconductors expects China’s electric car market to surge at a compound annual growth rate of 70 percent in the next decade as the government continues to extend its subsidies for the use of eco-friendly vehicles.
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