As reported by CNA on October 16th, Market speculations rise as NVIDIA CEO Jensen Huang’s visit to Taiwan for Foxconn Technology Day draws attention. Industry sources suggest potential collaborations in server and electric vehicle sectors.

Jensen Huang is set to visit Taiwan for Foxconn Technology Day, continuing discussions about possible partnerships between the tech giants. Industry experts have noted that the collaboration between NVIDIA and Foxconn extends primarily into the server sector, but there may also be untapped collaboration opportunities in the electric vehicle domain.

The market has been abuzz with speculation about Jensen Huang’s visit, following his visit to Taiwan in May. It is anticipated that he will participate in Foxconn Technology Day scheduled for October 18. Foxconn, the world’s largest contract electronics manufacturer, has remained tight-lipped about Huang’s visit. Nevertheless, the NVIDIA CEO has already arrived in Taiwan and was seen enjoying the local night markets, happily taking photos with fans.

Regarding Jensen Huang’s visit and the possible partnership with Foxconn, Dr. Arisa Liu , Research Fellow and Director of the Industrial Economic Information Database at Taiwan Institute of Economic Research (TIER), pointed out that while the primary focus of the collaboration between NVIDIA and Foxconn lies in the server sector, Foxconn is aggressively expanding its electric vehicle (EV) ventures, creating space for potential cooperation between the two tech giants in the EV field.

Dr. Liu emphasized that the recent negative press regarding artificial intelligence (AI) has raised concerns about the future growth prospects of AI. Additionally, NVIDIA is currently under investigation by the European Union for antitrust issues. Thus, Huang’s visit will be closely observed to determine whether it can help bolster the momentum in the supply chain.

The partnership between Foxconn and NVIDIA dates back to several years, with Jensen Huang holding a private meeting with Foxconn Chairman Young Liu during his visit to Taiwan in May. Last year, Foxconn’s subsidiary, Industrial Internet (IIoT) company Foxconn Industrial Internet (FII), announced the adoption of NVIDIA’s Grace CPU system for high-performance data centers and edge computing applications. FII introduced server systems powered by NVIDIA’s Grace CPU superchip, catering to the growing demand for efficient data centers.

In January of this year, Foxconn and NVIDIA announced a strategic partnership to collaborate on automotive and autonomous driving platforms. As part of the agreement, Foxconn became NVIDIA’s first-tier manufacturer, responsible for producing electronic control units (ECUs) based on NVIDIA’s DRIVE Orin system-on-a-chip (SoC) design for the global automotive market.

The tech industry will be closely monitoring Jensen Huang’s visit to Taiwan and the Foxconn Technology Day event for further insights into the evolving collaborations and strategic directions between Foxconn and NVIDIA.

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(Image: NVIDIA)

According to China’s 21jingji.com, Guangzhou Auto Group (GAC) announced on October 12th that its board of directors has approved an investment of up to $1.49 billion in Didi’s autonomous driving company. This investment is made through GAC Capital and Guangzhou Development District Investment Group in the form of a special fund, with each contributing equally to its establishment.

GAC’s contribution to GAC Capital will not exceed $0.75 billion, and this capital injection will support Didi’s continuous research and development efforts in autonomous driving technology, accelerating product applications and fostering open collaboration within the industry.

Not the first GAC-DiDi collaboration

In May 2021, GAC Aion and Didi’s autonomous driving company announced their joint effort to develop a mass-market, self-driving electric vehicle. In May 2023, they deepened their collaboration with the “AIDI Project,” marking the establishment of a joint venture. This initiative is a groundbreaking move towards the large-scale production of self-driving, new-energy vehicles in China.

The first mass-produced model, based on GAC Aion’s AEP3.0 high-end electric vehicle platform, will integrate Didi’s autonomous driving L4 urban generalized engine, as well as its self-driving technology for ride-hailing services. By 2025, these vehicles are expected to join Didi’s shared mobility network, facilitating 24/7, large-scale autonomous ride-hailing services and speeding up the commercialization of L4 autonomous driving.

Apart from the investment in Didi’s autonomous driving company, GAC has made various moves in the autonomous driving field. In August this year, GAC’s ride-hailing app platform “Ruqi” submitted its prospectus to the Hong Kong Stock Exchange, making its mark as the first autonomous driving operation technology company to go public.

Next Stop for China’s Robotaxi

Robotaxi is a pivotal scenario likely to lead the commercialization of autonomous driving before widespread adoption. GAC’s “Ruqi” has been actively pushing forward the commercialization of Robotaxi and autonomous driving technology over the past two years.

Robotaxi started the development and commercialization in 2021. In October 2022, a hybrid operation combining human-driven ride-hailing and Robotaxi service was launched in Guangzhou. In April 2023, Ruqi obtained the Intelligent Connected Vehicle Demonstration Operation Qualification in Guangzhou’s Nansha District, becoming the first domestic autonomous driving service platform in China to demonstrate operations with a self-developed Robotaxi fleet.

The fundraising from the prospectus submission is intended to be used primarily for the research and development of autonomous driving and Robotaxi operational services (about 40% of the funds) and product upgrades and operational efficiency improvements of mobility services (about 20% of the funds).

Path to Commercializing Autonomous Taxis in China

With the impetus from new players like Tesla, car manufacturers typically follow two paths in autonomous driving development: self-research and collaboration with suppliers. In the new trend, the outreach of automotive suppliers is expanding, as seen in the strategic investments by SAIC Group, General Motors in Momenta, Toyota’s investment in Pony.ai, and GAC’s strategic investment in WeRide

Some high-ranking executives in the autonomous driving industry believe that four key elements are required for the technology’s success: a shared mobility network, autonomous driving technology, support from automotive manufacturers and Tier 1 suppliers, and substantial capital support.

Era of Auto-Driving Is Coming                        

UBS Group predicts that by 2030, the global market for autonomous ride-hailing services may exceed $2 trillion, with China being a major force. IHS Markit has also predicted that by 2030, the total market size for shared mobility in China will reach $2.25 trillion, with a compound annual growth rate ranging from 20% to 28%. In this scenario, Robotaxi is expected to account for 60% of the market, with a size of $1.3 trillion, signifying a shift in the future of the ride-hailing market toward autonomous vehicle services.

(Image: Didi)

On September 20, 2023, France unveiled new incentives for purchasing electric vehicles, offering cash subsidies ranging from €5,000 to €7,000 for qualifying models. The subsidy criteria now take into account the carbon footprint during both the electric vehicle and battery manufacturing processes.

Given that China’s electric vehicle production relies more on coal-fired power generation, there’s a strong possibility that Chinese-made electric cars may not qualify for these subsidies. The French government plans to announce the list of eligible models in December 2023.

TrendForce’s point:
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According to data from Tianyancha, a website for querying various information about Chinese companies, Xiaomi Auto, has recently unveiled its “Electric Vehicle Charging and Charging Method” patent.

The patent abstract reveals a charging vehicle and method, featuring a battery compartment for housing batteries, a wireless charging device for wirelessly transferring energy from the batteries to the electric vehicle, and an autonomous driving system. The autonomous driving system guides the charging vehicle to a predetermined relative position in relation to the electric vehicle, enabling wireless energy transmission from the batteries to the electric vehicle.

This disclosure signifies a significant advancement in the automation of electric vehicle charging while simplifying the overall charging process.

It is worth noting that Xiaomi Auto has amassed over 300 authorized patents, with issued more than 700 patents.

Apart from its strides in automotive patents, Xiaomi’s ambitions extend to the broader automotive industry. Tianyancha’s data reveals that Xiaomi has recently established Jingming Technology in Wuhan and Shenzhen, both encompassing automotive sales and services. Xiaomi holds 100% ownership in both companies, each with a registered capital of 10 million RMB.

As per insider information from September, Xiaomi Auto is in the trial production phase, currently producing approximately 50 test vehicles per week. Xiaomi anticipates receiving the approval from the Ministry of Industry and Information Technology by the end of this year, paving the way for full-scale electric vehicle production.

According to Xiaomi’s earlier public plans, the official mass production of Xiaomi vehicles is set for the first half of next year, a timeline that some deem as somewhat delayed. However, at Xiaomi’s Investor Day earlier this year, CEO Lei Jun emphasized that Xiaomi views the auto industry as a century-long endeavor. He expressed confidence in launching Xiaomi vehicles in 2024 and aspired for Xiaomi Auto to rank among the world’s top five automakers within 15-20 years.

Since Lei Jun’s announcement of Xiaomi’s foray into the automotive sector more than two years ago, the electric vehicle market has witnessed significant changes. Evolving government policies regarding new energy vehicles and increased market competition present formidable challenges to new entrants.

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(Photo credit: Xiaomi)

A global supplier in materials, networking, and lasers, Coherent announced that DENSO  Corporation and Mitsubishi Electric Corporation have agreed to invest an aggregate $1 billion in its silicon carbide business (the “Business”). The transaction results from the strategic review process announced in May 2023 for the Business.

Under the terms of the transaction, DENSO and Mitsubishi Electric will each invest $500 million in exchange for a 12.5% non-controlling ownership interest in the Business, with Coherent owning the remaining 75%. Prior to the completion of the transaction, Coherent will separate and contribute the Business to a subsidiary. Coherent will control and operate the Business, which will continue to be led by Sohail Khan, Coherent’s Executive Vice President, New Ventures & Wide-Bandgap Electronics Technologies.

In connection with the transaction, the Business will enter into long-term supply arrangements with DENSO and Mitsubishi Electric that support their demand for 150 mm and 200 mm silicon carbide (“SiC”) substrates and epitaxial wafers.

“We are excited to expand our strategic relationships with DENSO and Mitsubishi Electric to capitalize on the significant demand for silicon carbide,” said Dr. Vincent D. Mattera, Jr., Chair and CEO, Coherent. “After a thorough review of strategic alternatives for our Silicon Carbide business, we determined that the creation of a separate subsidiary and the strategic investments from DENSO and Mitsubishi Electric, two leaders in SiC power devices and modules, is the best path forward to maximize shareholder value and position the Business for long-term growth. The investments from our strategic partners will be used to accelerate our capacity expansion plans and help sustain our leadership position, while ensuring the development of a robust and scalable supply for the rapidly growing market for SiC-based power electronics, largely driven by the explosive growth of the global electric vehicle market.”

“We are very pleased to establish a strategic relationship with Coherent, which has a world-class track record in SiC wafer manufacturing. Through this investment, we will secure a stable procurement of SiC wafers, which are critical for BEVs, and contribute to the realization of a carbon-neutral society by promoting the widespread adoption of BEVs,” said Shinnosuke Hayashi, President & COO, Representative Member of the Board at DENSO.

Dr. Masayoshi Takemi, Executive Officer, Group President, Semiconductor & Device of Mitsubishi Electric, said: “Demand for SiC power semiconductors is expected to grow exponentially as the global market for electric vehicles increases in line with the transition to a decarbonized world. To capitalize on this trend, we have decided to expand our SiC power semiconductor production capacity, including by constructing a 200 mm wafer plant in the Shisui area of Kumamoto Prefecture. We are delighted to strengthen our partnership with Coherent by investing in this new SiC company, which will provide us with a stable supply of high-quality SiC substrates essential for our increased supply capacity.”

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(Photo credit: Coherent)