Huawei Extends Chongqing Changan Smart Car Partnership to Include Chip Development: Reuters

Huawei Technologies Co Ltd extended its smart car partnership with Chongqing Changan Automobile Co Ltd to add automotive semiconductor design and development, Reuters reports.
The auto sector is estimating $110 billion in lost revenue this year from the semiconductor chip crisis. The U.S. Commerce Ministry refused any partiality towards the industry.
Huawei and Changan have been working unofficially on chips for the last few months since their November smart car partnership.
Huawei will lead the smart vehicle’s operating system and cabin technologies, Changan will head the smart vehicle design and engineering, and Battery maker CATL will also be a part of the smart car partnership.
The companies aim to tap the mid to high-end market from 2022, challenging the likes of Tesla Inc TSLA and Nio Inc NIO.
The business will be held in an old venture with Nio that has been renamed Avatar.
Avatar has started hiring staff for its Shanghai office and could go public.
Huawei and Changan are likely to forge a chip development joint venture. Changan’s chip development plans have met little success.
Huawei is also planning electric vehicles (EVs) under its brand and is in talks to acquire a small domestic automaker’s EV unit. Huawei is trying to offset the U.S. embargo-induced smartphone business hit by focusing on the booming EV industry. It plans to spend over $1 billion in the industry.
Changan also harbors listing plans for its EV unit on Shanghai’s STAR Market.