China plans to deploy the ambition of 30 million driverless cars in the next 10 years, and will foster an emerging chip industry, such as Horizon Robots, which will provide a "brain" for these driverless cars.
As autonomous vehicles begin to mature and international trade uncertainty grows, Horizon Robots takes NVIDIA and Mobileye as their competitors. By 2021, the annual revenue of driverless car chips will more than double to $5 billion.
Horizon Robot is an example of China's no longer focusing on the downstream industries of the manufacturing industry chain such as smart phones and televisions, and striving to advance into upstream industries such as semiconductors and artificial intelligence. The country's industrial policy is intended to help China reduce its annual revenue by 1.75 trillion yuan (US$276.4 billion) - more than oil imports - chip imports.
Wei Shaojun, director of the Institute of Microelectronics at Tsinghua University, said at a forum held in Shanghai, "China must spare no effort to develop its own chip technology to improve security, especially in the US government. time."
Figure: Horizon Robot Processor
Bloomberg published an article saying that promoting self-reliance is a priority for the Chinese government. The Chinese government has set up a fund worth RMB 200 billion to invest in local chip makers.
As the world's largest auto market and electric vehicle market, China hopes that these cars will use their own chips. The Chinese government expects that the output value of sensors and embedded chips will exceed 100 billion yuan in 2020.
The car will use more chips
Figure: The automotive chip market will grow rapidly
Ding Wenwu, president of China IC Industry Investment Fund, said, "All countries are on the same starting line, which creates opportunities for China."
Horizon Robot was founded in 2015. The founder is Yu Kai, the former head of Baidu Deep Learning Institute. The investors include Intel Capital, Harvest Fund Management Co., Ltd., and Russian billionaire Yuri Minar. Yuri Milner) and China Construction Investment. In December last year, Horizon Robots completed a round of financing worth $100 million.
Horizon Robots introduced a processor called "Journey 1.0", which was shown at GM's Yukon XL at the International Consumer Electronics Show this year.
Yu Kai said, "Chinese companies are transforming from 'Made in China' to 'Created in China'. Now, we will advance to 'China's invention.'"
Horizon Robot is working with Audi, Chongqing Changan and component manufacturer Robert Bosch. In 2016, a Chongqing Changan car with autonomous driving technology ran 1200 miles (1931 km) on the road.
Figure: Horizon Robot Second Generation Journey Processor
The industry in which the number of LED bulbs in a brake light is limited to reduce fuel consumption, processing data from lasers, radars, and camera sensors without quickly consuming battery power is a huge challenge for chip manufacturers.
Yu Kai said, "Our goal is to have the horse run fast, run far, and eat less grass. If the embedded car chip consumes too much power, it will affect the mileage of the car."
Audi China branch spokesperson Johanna Barth said that Audi chose Horizon Robot technology in a project for China and will take the next step after evaluating the results, but did not disclose details. She said that in the cars sold outside of China, Audi chose sensors from NVIDIA and Mobileye.
In the past seven quarters, NVIDIA's revenue has increased by more than 20%, in part due to the increase in demand for autonomous vehicles. NVIDIA is working with Baidu to develop a self-driving car platform and plans to use it in cars made by Chery.
Danny Shapiro, senior director of NVIDIA's automotive business, said, "We are working with Chinese automakers and the Chinese eco-chain, as well as multinational auto companies that sell cars in China."
One of NVIDIA's partners is Tucson Internet, a self-driving truck startup in Beijing. Tucson Internet plans to commercialize truck fleets in Arizona and Shanghai, China next year.
Hou Xiaodi, chief technology officer at Tucson Internet, said, "We are quite satisfied with NVIDIA's chips - the most powerful computing power for autonomous driving solutions."
Mobileye, acquired by Intel last year, provides image sensing and processing technology for driving assistance. Intel spokesman Danielle Mann said Mobileye hopes to expand its presence in China through the fourth-generation EyeQ chip and a map system called Road Experience Management.
Mobileye launched Road Experience Management in China by partnering with SAIC and digital map service provider NavInfo.
China has the money and determination to become an important force in the semiconductor field, just like electric cars.
Premier Li Keqiang said at this year's National People's Congress that China's industry priorities include becoming a leader in advanced manufacturing, including integrated circuits, 5G mobile communications, aero engines and new energy vehicles.
The Chinese government plans to invest about 150 billion US dollars in the next 10 years. Wei Shaojun said, "Governments in major countries around the world are using resources such as policies, talents and funds to upgrade their industries."
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