PATEO taps Horizon Robotics for new auto SoC, shares jump 7%

PATEO is partnering with Horizon Robotics, adopting its new Horizon Starry system-on-chip to challenge the dominance of Nvidia and Qualcomm in the intelligent vehicle market.

"The two parties will combine their complementary strengths... and jointly create platform-level solutions for vehicle intelligence and localization," PATEO announced in a statement on Tuesday.

The Horizon Starry is described as China's first cockpit-driving integrated SoC, a single chip handling both infotainment and driving functions. This integration aims to lower costs compared to rival platforms like Nvidia's Drive and Qualcomm's Snapdragon Ride, which often separate these tasks.

For PATEO (02889.HK), which saw its stock jump nearly 7% on the news, the deal secures access to a key domestic AI chip. This could reduce reliance on foreign suppliers and boost its position in China's competitive electric vehicle market.

The strategic cooperation will focus on integrating AI technology across intelligent cockpits, autonomous driving, and in-car robotics. By becoming one of the first contracted clients for the Horizon Starry SoC, PATEO gains a first-mover advantage in leveraging a localized, high-performance solution. This partnership aligns with a broader trend in the Chinese auto industry to build a more self-reliant supply chain for critical components like advanced semiconductors. The move positions PATEO to better compete with other Tier 1 automotive suppliers who have already established deep relationships with global chip giants.

This article is for informational purposes only and does not constitute investment advice.