US chip maker Intel has said it will take a 15 per cent stake in German digital mapping firm HERE, as it seeks to build its presence in automated driving technology.
A filing to the German cartel office on Tuesday showed Intel had sought approval to buy a stake in the company, which is controlled by German car makers Daimler, BMW and Volkswagen.
Intel and HERE said in a statement they had also signed an agreement to collaborate on the research and development of real-time updates of high-definition (HD) maps for highly and fully automated driving.
Intel did not disclose how much it would pay for the stake but said the transaction is expected to close in the first quarter.
Partnerships
The deal highlights a shift in the dynamics of research and development in the car industry, which until recently saw car makers largely dictating terms for suppliers to manufacture their proprietary technologies at specified volumes and prices.
Now car makers are increasingly striking partnerships with technology firms using open technology standards, seeking to harness their expertise in areas including machine learning and mapping as they race against Silicon Valley companies such as Google, Tesla and Apple to develop driverless vehicles.
Last month two Chinese companies and Singapore's sovereign wealth fund GIC agreed to buy a 10 per cent stake in HERE, while in July BMW teamed up with Intel and Mobileye to develop self-driving cars by 2021.
BMW, Daimler and Volkswagen bought HERE for €2.8 billion in 2015 from mobile equipment maker Nokia of Finland.
Last September, HERE said it would introduce a new set of traffic services allowing drivers to see for themselves what live road conditions are like miles ahead using data from competing car makers, an industry first.
– Reuters
