Toyota Motor Corp and auto-parts maker Denso Corp have announced that they have agreed to set up a joint venture to develop next-generation automotive semiconductors.
In a joint statement the companies said that Denso, a Toyota Group supplier, will own 51% of the new company, with Toyota holding the remainder.
Reuters reports that the companies said that the aim is to establish the company in April 2020 with a capitalisation of 50 million yen (£368,231) and about 500 employees.
According to Reuters the venture intends to focus on components such as power modules for electric vehicles and periphery monitoring sensors for automated vehicles.
Toyota and Denso agreed in June of last year to consolidate their electronic components production and development at the supplier in order to improve efficiency and accelerate innovation.
The two companies also partnered with another Toyota Group supplier, Aisin Seiki, to set up a development centre for autonomous driving in Tokyo in March of last year, called Toyota Research Institute – Advanced Development, or TRI-AD, reports Reuters.