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NXP Signs Deal to Advance Tech in China’s Auto Industry

April 11, 2017 by Jeff Shepard

NXP Semiconductors inked a partnership with a subsidiary of China's Ministry of Industry and Information Technology (MIIT) on Monday, to prepare for opportunities in intelligent transportation. Under the partnership with the China Academy of Information and Communications Technology, the think tank of MIIT, the two sides will cooperate on research and development of industry standards for the internet of vehicles, talent exchange and product development.

The move aims to advance China's car industry with secure connectivity and infrastructural solutions, such as vehicle-to-vehicle and vehicle-to-infrastructure communications for smarter traffic, NXP said in a statement.

It is part of the Dutch company's broadened efforts to tap into opportunities in China, the world's largest automotive market, where the burgeoning mobile internet industry has cultivated thousands of consumers who are ready embrace the internet of things.

Zheng Li, NXP's senior vice-president and Greater China president, said the collaboration will accelerate the development of China's internet of vehicle industry and help promote international standards across automotive applications.

As of December 2016, only 67 enterprises in China have been granted licenses to offer internet of vehicle services, and only nine of those are registered with capital above 100 million yuan, official data shows.

“The sector is still in its infancy but it has huge potential as both heavyweights and startups are experimenting with new technology to boost growth,” said Tang Libo, an expert at the China Academy of Information and Communications Technology.

NXP teamed up with Changan Automobile and Neusoft in September to establish the China Auto Security Common Interests Group (CIG). The group brings together a hardware-based industry cooperative organization for automotive security with domestic automotive and software partners in the global market.

It aims to help develop comprehensive industrial solutions and establish industry standards for automotive cyber security in China.