Despite a persistent semiconductor shortage that is disrupting the global automotive industry, investors remain bullish on the chips used to power next-generation vehicles.
Kneron, a startup that develops semiconductors to give devices artificial intelligence capabilities by using edge computing, just got funded by Delta Electronics, a Taiwanese supplier of power components for Apple and Tesla. The $7 million investment boosts the startup’s total financing to over $100 million to date.
As part of the deal, Kneron also agreed to buy Vatics, a part of Delta Electronics’ subsidiary Vivotek, for $10 million in cash. The new assets nicely complement Kneron’s business as the startup extends its footprint to the booming smart car industry. Vatics, an image signal processing provider, has been selling system-on-a-chip (SoC) and intellectual property to manufacturers of surveillance, consumer, and automotive products for many years across the United States and China. Image recognition is increasingly in demand to ensure the safety of automated cars.
Headquartered in San Diego with a development force in Taipei, Kneron has emerged in recent years as an alternative AI chip option to incumbents like Intel and Google. Its chips boast of low-power consumption and enable AI processing directly on the chips using the startup’s proprietary software, a departure from solutions that require data to be computed through powerful cloud centers and sent back to devices.
The approach has won Kneron a list of heavyweight backers, including strategic investor Foxconn, Qualcomm, Sequoia Capital, Alibaba, and Li Ka-shing’s Horizons Ventures.
Kneron has designed chips for scenarios ranging from manufacturing, smart homes, smartphones, robotics, surveillance and payments, to autonomous driving. In the automotive field, it has struck partnerships with Foxconn and Otus, a supplier for Honda and Toyota.
Following the acquisition, Vatics executives will join Kneron to lead its surveillance and security camera division. The merged teams will jointly develop products for surveillance and automotive customers going forward.
“This acquisition will allow us to offer full-stack AI solutions, along with our current class-leading NPUs [neural processing units], and will significantly speed up our go-to-market strategy,” said Kneron’s founder and CEO, Albert Liu.