Hitachi and Panasonic increase investment in autonomous driving technology and enter the automotive field

According to a recent report by Nikkei, Hitachi and Panasonic have also increased their investment in the field of autonomous driving as Japanese companies try to provide the necessary technologies required for self-driving cars.

Hitachi reportedly plans to invest about 500 billion yen (4.38 billion U.S. dollars) in the field of autonomous driving by fiscal 2018, a 20% increase on the total investment from 2012 to 2015. In fiscal 2018 alone, Hitachi will invest about 10 billion yen in the automotive industry (including personnel costs), which is about 60% more than in fiscal 2015. Hitachi will focus on the development of autonomous driving vehicle systems, such as image analysis software and integrated electronic control units (ECUs). ECUs can analyze the environment around the vehicle and adjust the direction and speed appropriately. In addition, Hitachi will increase the production capacity of ECUs and sensors, including collision avoidance technology. Hitachi will also invest 230 billion yen to update equipment and expand production lines.

Hitachi has taken various approaches to restructure its portfolio, including selling its tool maker Hitachi Koki to the U.S. fund KKR. Hitachi Group's latest investment plan shows that Hitachi has positioned the automotive sector as a core business equivalent to information and infrastructure systems.

Panasonic plans to increase the production capacity of electric vehicle batteries. Panasonic plans to invest 150 billion to 200 billion yen in the research and development and acquisition of electric vehicle lithium batteries in the next three years. At the same time, Panasonic will reduce the production capacity of LCD TV panels and thus reduce its investment in the TV field. Panasonic will adjust its strategic focus to the automotive industry through the electric vehicle battery business.

Panasonic plans to invest half of its annual 300 billion yen (about 18.196 billion yuan) equipment budget in the automotive field to lay the foundation for increasing production capacity (especially battery production capacity). In addition, Panasonic will accelerate the development of driver seats equipped with multimedia and communication equipment.

In total, Hitachi and Panasonic will invest 1 trillion yen in the field of autonomous driving, which is 30% more than the total investment in the past three years. The two companies are currently adjusting their investment portfolios and business focus, and the automotive industry will be the next important field.

Japanese companies invest across industries in the automotive sector

At present, technology giants such as Apple and Google are trying to compete with mainstream automakers and strive to have an absolute lead in the development of the next generation of cars. At the same time, many Japanese automakers are trying to meet the electronic and software requirements of autonomous driving technology.

Although the field of artificial intelligence is dominated by companies such as IBM and Baidu, some Japanese information technology companies are still actively investing in artificial intelligence equipment required for autonomous driving technology. Fujitsu plans to invest 30 billion yen by fiscal 2018 to produce an autonomous driving assistance system that can use artificial intelligence to analyze driving data through the cloud. Similarly, Toshiba will also invest 30 billion yen in the field of cutting-edge semiconductor technology with artificial intelligence functions.

Many car navigation system companies have seen their living space shrink due to the popularity of smartphones, but now they see new development opportunities in the field of autonomous driving technology. Pioneer is currently developing a measurement tool that can sense the vehicle's surroundings in three dimensions, hoping that its size will be smaller than current products. JVC Kenwood is currently developing a head-up display that can display driving information on the windshield. In addition, the company has also applied image processing technology to electronic car mirrors.

Once the vehicle realizes the autonomous driving function, various configurations on the vehicle will play different roles. Users who concentrate on driving are accustomed to choosing music and videos to relax themselves, which has also brought new attention to the audio technology of many Japanese companies.

According to the Electronics and Information Technology Industry Association, the global demand for autonomous vehicles will reach 25.87 million in 2025, 12 times that of 2015. In order to keep up with the market growth, auto parts suppliers Denso and NEC have reached a cooperation agreement to jointly develop parts for autonomous vehicles. Nikkei pointed out that the cooperation strategy to avoid disadvantages will become the magic weapon for each company to win.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.