(Yicai Global) May 30 -- MediaTek and Nvidia have joined hands on developing chips for connected vehicles, marking the third cooperation between Chinese and American firms on smart cars in one month.

MediaTek will make automotive system-on-chips while integrating Nvidia's graphics processing unit chiplet and the California-headquartered firm's intellectual property related to artificial intelligence and graphics, the Hsinchu-based maker of chips for handsets and computers said in a statement yesterday.

Automotive has become one of the few emerging growth points for chipmakers lately as most semiconductor manufacturers have reported declining business performance this year. The demand for industrial-grade and automotive-grade semiconductors is strong so many firms have upgraded their industrial layout, Zhao Xiaoma, partner of China Insights Consultancy, told Yicai Global.

Industry players are crossing borders to team up. American chip giant Qualcomm and Chinese software maker Thunder Software Technology announced their cooperation a few days ago to build a joint innovation center for intelligent vehicles. Thunder Soft will provide the operating system and software while Qualcomm offers its hardware.

Moreover, Intel and Lenovo teamed up on intelligent cars on May 18. as the pair will build two Internet of Vehicles projects in Chongqing. California-based Intel will bring its hardware and software development kits to the table while the Chinese personal computer giant will come up with connected car solutions.

"Full cooperation between OS companies and chip companies can lower the threshold for the whole industry to engage in the Internet of Vehicles," Zhao Hongfei, chief executive of Thunder Soft, told Yicai Global earlier. Chips, communications, and OS are the three largest points in building an industry ecosystem and to maximize chip capabilities it is necessary to optimize software, toolchains, and OS, he added.

Editor: Emmi Laine, Xiao Yi