Tesla Supplier Delta Electronics Invests in AI Chip Startup Kneron

Investment in AI Chips for Next-Generation Vehicles Continues

Despite ongoing challenges stemming from a global semiconductor shortage impacting the automotive sector, investor confidence in chips designed for future vehicles remains strong.

Kneron Secures Funding and Acquires Vatics

Kneron, a company specializing in the development of semiconductors that enable artificial intelligence through edge computing, has received a $7 million investment from Delta Electronics.

Delta Electronics is a Taiwanese supplier of power components for major companies like Apple and Tesla. This investment brings Kneron’s total funding to over $100 million.

As part of this agreement, Kneron will also acquire Vatics, a subsidiary of Delta Electronics’ Vivotek, for $10 million in cash.

This acquisition is strategically aligned with Kneron’s expansion into the rapidly growing smart car industry, complementing its existing business operations.

Vatics' Expertise in Image Signal Processing

Vatics is a well-established provider of system on a chip (SoC) and intellectual property.

For years, they have served manufacturers of surveillance, consumer electronics, and automotive products in both the United States and China.

Kneron's Position in the AI Chip Market

With headquarters in San Diego and a development team in Taipei, Kneron has quickly become a significant competitor to established AI chip companies such as Intel and Google.

Kneron’s chips are designed for low-power consumption and facilitate data processing directly on the device.

This approach differs from traditional methods that rely on cloud-based computation and data transmission.

Strong Backer Portfolio

Kneron has attracted a diverse and influential group of investors, including:

• Foxconn
• Qualcomm
• Sequoia Capital
• Alibaba
• Horizons Ventures (Li Ka-shing’s venture firm)

Diverse Applications and Automotive Partnerships

Kneron’s chips are utilized in a wide range of applications, including manufacturing, smart homes, smartphones, robotics, surveillance, payments, and autonomous driving.

Within the automotive sector, Kneron has established partnerships with Foxconn and Otus, a key supplier for Honda and Toyota.

Synergies from the Acquisition

Following the acquisition, Vatics’ leadership team will integrate with Kneron to spearhead its surveillance and security camera division.

The combined teams will collaborate on the development of both surveillance and automotive products.

The integration of image signal processors with neural processing units is crucial for object detection and enhancing the safety of self-driving vehicles.

Kneron's Future Strategy

“This acquisition will allow us to offer full-stack AI solutions, alongside our current class-leading NPUs [neural processing units], and will significantly speed up our go-to-market strategy,” stated Albert Liu, founder and CEO of Kneron.