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5. Denso Group (China) Business Report FY ended Dec. 2016

Denso Group (China) Business Report FY ended Dec. 2016

Recent Development of Parent Company

-Denso Corporation (Denso) announced that it will conduct joint research with U.K.-based Imagination Technologies Ltd. (Imagination Technologies) on the "hardware multi-threading" that enables central processing units (CPUs) to execute multiple concurrent processes. While this function has already been used in devices like personal computers, the aim of the joint research is to achieve high durability suitable for automotive CPUs. The two companies will implement their research results for autonomous driving and other purposes in the second half of 2020. Imagination Technologies is a maker focused on the design, development, and licensing of computer integrated circuits, with a proven track record in multi-threading development. It has had a collaborative relationship with Denso for ten years. (From an article in the Nikkan Jidosha Shimbun on November 14, 2016)

-Denso Corporation (Denso) announced that it has improved the recognition performance of its automotive vision sensors by adopting Sony Semiconductor Solutions Corporation's (Sony Semiconductor Solutions) image sensors. Automotive vision sensors recognize objects ahead and white lines on roads with cameras, and Denso's new vision sensors can detect pedestrians at night. In the Japanese and European New Car Assessment Programs, night-time pedestrians will be added to the scope of collision avoidance performance evaluation standards for automatic brakes. Denso has developed vision sensors that will satisfy the new standards. Sony Semiconductor Solutions has the largest share in the global image sensor market (including home electronics). Their image sensors can precisely photograph subjects in dark conditions like nighttime. Denso has adopted these image sensors, and enhanced performance in areas for use in vehicles like ease of installation and resistance to heat and vibrations. (From an article in the Nikkan Jidosha Shimbun on October 26, 2016)

-Denso Corporation (Denso) and Toshiba Corporation (Toshiba) announced that they have reached a basic agreement on the joint development of artificial intelligence (AI) for automotive image recognition systems. The two companies will use deep neural network (DNN) technology, an algorithm modeled after human brain neural networks, in image processing. The use of DNN will realize highly accurate recognition processing that is equal to or better than human brains. They are aiming at practical use of the DNN image recognition technology, and realize advanced driver assistance systems and autonomous driving technologies. To achieve autonomous driving, various situations must be recognized, including obstacles, road signs, driving space, and anticipated dangers. In conventional image recognition using pattern recognition and machine learning, objects that need to be recognized must be artificially characterized and learnt in advance. In the DNN image recognition, the characteristics of many different objects will be automatically identified and learnt, and the detection accuracy is dramatically improved. (From an article in the Nikkan Jidosha Shimbun on October 18, 2016)

New Plant

-Denso Corporation announced that it has established a 50-50 joint venture with Kingtec Technologies (Heyuan) Co., Ltd., a Chinese refrigerator systems manufacturer, in Heyuan, Guangdong Province, China. The new company, Guangdong KINGTEC DENSO Refrigeration Equipment Co., Ltd., will develop, manufacture, and sell refrigerator systems for trucks and other applications. Production is scheduled to start in May 2016. The new company is capitalized at CNY 30 million (approximately USD 4.8 million), of which 50% was provided by Denso’s regional headquarters in China, Denso (China) Investment Co., Ltd., and 50% was provided by Kingtec. It will have a workforce of approximately 140 employees at the start of operations. (From a press release on March 25, 2016)

R&D Facility

Number of employees

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Source: China Automotive Industry Yearbook (Issued in Octover)

Source: China Automotive Industry Yearbook (Issued in Octover)