Toyota, Denso to Form Chip Design Venture

Toyota Motor Corp. and its Denso partsmaking affiliate are creating a joint venture next year to develop next-generation processors for sensors and power controllers used in connected and self-driving vehicle systems.

Denso and Toyota will own 51% and 49%, respectively, of the unnamed venture. The companies expect to launch the new company next April with 500 employees and 50 million yen ($461 million) in capital.

The venture is the result of an agreement a year ago between the two companies to consolidate their development and production for electronic components at Denso.