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Honda Motor (NYSE:HMC) and IBM (NYSE:IBM) have entered into a memorandum of understanding to collaborate on the long-term joint research and development of next-generation computing technologies such as chips for software-defined vehicles, the companies said on Wednesday.
The agreement outlines intent to research and develop solutions to new challenges related to processing performance, power consumption, and design complexity.
Honda (HMC) and IBM (IBM) anticipate that software-defined vehicles (SDVs) of the future “will dramatically increase the design complexity, processing performance, and corresponding power consumption of semiconductors compared to conventional mobility products,” they said in a statement.
The application of intelligence/AI technologies is expected to accelerate widely in 2030 and beyond, creating new opportunities for the development of SDVs, the joint statement read.
A source in Honda told Nikkei Asia that “details such as the upcoming schedule and each company’s role in this joint R&D have not been decided between the companies,” adding that it is the first time for the two companies to form a large-scale partnership.
Meanwhile, faced with stiff competition from lower-priced Chinese-made vehicles, Honda (HMC) now expects to sell 1.06M cars in China in FY24, down 13% from the previous year, and 40% lower from the record high established in 2020.
The joint venture between Honda Motor (HMC) and Chinese state-owned Guangzhou Automotive Group trimmed its Chinese workforce by offering voluntary layoffs to 1,700 employees, according to a separate Nikkei Asia report.