A global shift towards battery-powered vehicles makes for interesting bedfellows. India’s biggest electric car maker and Japanese chipmaker Renesas are partnering to design and develop semiconductors. Amid a global shortage of auto chips, the benefits for Tata Motors are clear. But Renesas has more to gain long term.
Although electric vehicles have far fewer parts than typical automobiles, their dependence on technology may well be greater. Renesas will collaborate with Tata Motors on developing next-generation automotive technology including driver-assistance and 5G wireless systems.
The current global chip shortage means Renesas has the Indian government on its side. Overreliance on Taiwanese and South Korean chipmakers has prompted India to offer $10bn in incentives to lure more chip manufacturing into the country to build local supply chains.