(Yicai Global) Dec. 13 -- Israeli fabless manufacturer Valens Semiconductor, whose in-vehicle ultra-high-speed connectivity chipsets just won the 2020 CES Innovation Award, is in discussions with Chinese carmakers about forging a partnership, according to its vice president.
Valens has already tied up with Geely and other Chinese carmakers, Daniel Adler told Yicai Global during a recent trip to Shanghai. Now the Hod HaSharon-based company is in talks with producers of new energy vehicles, automotive parts and components about potential collaboration.
Valens is bullish on China's fast-growing automobile market, Adler said, adding that China is the world's largest vehicle market and is actively spurring the growth of NEVs.
Despite as yet modest sales of NEVs in China, the government has championed the development and production of non-fossil-fuel vehicles in a bid to cut air pollution. It now wants about a quarter of all cars sold in the country by 2025 to be electric, according to a draft policy document published at the start of this month. China's carmaker and tech companies are also spending billions of dollars on developing self-driving vehicles.
"We recognize that China is not only the largest market in the world but also one of the main driving forces behind the new mobility revolution with many leading NEV cars and autonomous driving providers," said Adler, who is also head of the company's automobile business. "In the past few years, Valens has been increasing its investments in China, and we are growing our automotive local forces."
The firm's chipsets can integrate audio, video, controlling signals, power supply and many other functions into one unshielded-twisted-pair cable. The technology has previously been mainly adopted by major international audio and video equipment manufacturers. Now the Israeli firm is promoting its use in the automobile sector.
"Valens' automotive solutions enable a considerable reduction in the number of devices, wires and connectors, leading to less weight and lower costs, without affecting the quality of performance," Adler said.
As China promotes the technologies connected with fifth-generation mobile networking, autonomous driving and car-networking technology will develop rapidly, he said. That will bring a broader application for Valens' technologies, boosting the company's prospects.
"We are also in discussion with research and standardization institutes in the country, to make sure we address the specific needs of the market," he added.
Valens now has offices in Shenzhen and Shanghai. Its management team in China is also constantly expanding as Chinese firms' demand for high-performance chips grows. The company does not rule out building a research and development team in China, if it is necessary for business development, Adler said.