Huawei joined hands with Chongqing Changan, a Chinese auto company, and began to engage in chip development for electric vehicles.
According to Reuters news agency, two sources familiar with the matter said that Huawei and Chongqing Changan have been collaborating in the field of semiconductor chip production informally for the past few months. Meanwhile, another source said that the two sides will soon form a joint venture to develop and produce chips.
Huawei is starting to move into the car business after being hit by a US ban that made it lose access to chip design software for smartphones. The company recently launched the Seres SF5 crossover between Huawei and energy firm Cyrus. This model features smartphone connectivity and automatically transfers music and navigation information between the two sides, and is equipped with voice control technology and an audio system with 11 speakers. 
Visitors at Auto Shanghai exhibition in Shanghai (China). Photo: Reuters. Sources familiar with the matter said that, in addition to working with Changan to develop joint venture-branded smart cars, Huawei also plans to launch its own branded electric vehicles. and is in talks to buy a controlling stake in the electric vehicle division of a small domestic automaker. Huawei’s partnership with Chongqing Changan comes amid a global shortage of semiconductors and particularly affects carmakers. According to observers, switching to the automotive chip business is a more appropriate new direction, especially when the company is unable to produce chips for smartphones due to the bans from the US. Changan is currently unavailable for comment. Meanwhile, Huawei said it will let automakers make announcements about their cooperation relationships. Battery maker CATL, also part of the partnership, was also unavailable for comment.
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