• Huawei Technologies Co Ltd extended its smart car partnership with Chongqing Changan Automobile Co Ltd to add automotive semiconductor design and development, Reuters reports.

  • The auto sector is estimating $110 billion in lost revenue this year from the semiconductor chip crisis. The U.S. Commerce Ministry refused any partiality towards the industry.

  • Huawei and Changan have been working unofficially on chips for the last few months since their November smart car partnership.

  • Huawei will lead the smart vehicle’s operating system and cabin technologies, Changan will head the smart vehicle design and engineering, and Battery maker CATL will also be a part of the smart car partnership.

  • The companies aim to tap the mid to high-end market from 2022, challenging the likes of Tesla Inc (NASDAQ: TSLA) and Nio Inc (NYSE: NIO).

  • The business will be held in an old venture with Nio that has been renamed Avatar.

  • Avatar has started hiring staff for its Shanghai office and could go public.

  • Huawei and Changan are likely to forge a chip development joint venture. Changan’s chip development plans have met little success.

  • Huawei is also planning electric vehicles (EVs) under its brand and is in talks to acquire a small domestic automaker’s EV unit. Huawei is trying to offset the U.S. embargo-induced smartphone business hit by focusing on the booming EV industry. It plans to spend over billion in the industry.

  • Changan also harbors listing plans for its EV unit on Shanghai’s STAR Market.

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