NXP, Datang Telecom launch first Chinese automotive chip company

December 03, 2013 // By Christoph Hammerschmidt
Within the past decade, China became one of the world's largest - and fastest-growing - automotive nations. Now the first Chinese semiconductor company dedicated to the automotive market has been launched - a joint venture of Dutch chipmaker NXP and China's Datang Telecom Technology.

The new JV will focus on developing semiconductors for hybrid and electric cars. These types of vehicles are one of the highlights of China's five-year plan. The products are intended to be sold locally, NXP writes in a press release.

The JV bears the name Datang NXP Semiconductors Co., Ltd; the headquarters will be Nantong near Shanghai. In terms of product strategy, the company will develop application-specific mixed-signal chips. NXP, who claims to be the number one semiconductor supplier to China's automotive industry, will hold 49 % of the JV's shares. The Dutch company also will provide expertise and intellectual property, in particular in the area of power management and battery management.

The JV offers NXP the chance to speed its growth in this important market, explained NXP Automotive General Manager Kurt Sievers. "With the focus on technologies for vehicles with alternative power train, we are very much in line with the priorities of Chinas's government", Sievers said. At the same time, the JV will complement NXPs existing portfolio for the connected car.