MediaTek has signed a partnership agreement with NavInfo. NavInfo plans to acquire AutoChips, a Chinese subsidiary of MediaTek, for USD 600 million. AutoChips is a provider of automotive infotainment SoC services. The transaction is scheduled for completion in the fourth quarter of this year, subject to regulatory approvals. Concurrently, MediaTek plans to invest in or co-invest with NavInfo, an amount of up to USD 100 million, to cooperate in the fields of Automotive ICs and the Internet of Vehicles (IoV).
NavInfo is a China-based provider of digital maps. Its clients include automakers BMW, VW, Mercedes, GM, Toyota, Volvo and Great Wall. In addition, NavInfo has long cultivated the IoV market, from providing traditional services such as digital maps, to now providing dynamic traffic information, cloud services, automotive apps, and automotive OS. Aside from IoV 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 plans to expand its presence in the IoV market. MediaTek will also continue to use 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.
