The MediaTek May 13 announcement is about Chinese digital Mapping Company NavInfo and MediaTek's Jie Science and Technology.
As reported, MediaTek made an announcement today that was big enough to get the trading of its stock halted in Taiwan. In a press-conference Friday afternoon MediaTek announced that Chinese based NavInfo will be merged with MediaTek's Jie Science and Technology subsidiary.
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NavInfo is a digital mapping company supplying car makers like BMW, VW, GM and Mercedes. NavInfo is the world's third largest digital mapping company. The deal is aimed at strengthening automotive electronics car networking opportunities for MediaTek.
NavInfo plans to wholly acquire AutoChips, Inc. a Chinese subsidiary of MediaTek, for a purchase price of US $600 million. Completion of the above is scheduled for Q4 2016, subject to various relevant regulatory approvals.
Concurrently, MediaTek plans to invest in or co-invest with NavInfo, an amount of no more than US$100 million, to cooperate strategically in the fields of Automotive ICs and the Internet of Vehicles.
Aside from Internet of Vehicles services for car manufacturers, NavInfo also provides clients such as Tencent, Baidu, and Didi with dynamic traffic information to power their services.
From this cooperation, MediaTek shall become better attuned to opportunities in the Internet of Vehicles market. In complement, MediaTek will continue to leverage its expertise in wireless communications and image processing, and along with NavInfo, to jointly develop and cultivate the Automotive IC and Autonomous Car markets, with an eye for opportunities in ADAS and Telematics.
AutoChips is a Chinese subsidiary of MediaTek offering automotive infotainment SoC solutions. The goal of this cooperation is to leverage the strength of AutoChips in hardware and the expertise of NavInfo in software to provide clients with an enhanced infotainment SoC solution, as well as integrated dynamic traffic information, to cultivate the Internet of Vehicles market.
Through the relationships of NavInfo, AutoChips can also work more directly with automakers in the future.
MediaTek said in a statement "This strategic cooperation is a win-win scenario for the company and our valued partner, NavInfo. Aligned both financially and strategically, both MediaTek and NavInfo can leverage the other’s market leading positions to help propel growth in the fast growing markets of Automotive IC and Internet of Vehicles."
The MediaTek announcement comes at a time as Apple invests $1 Billion in Chinese ride sharing company Didi Chuxing. Cars are still the biggest growth market apparently.