ON Semiconductor Corp (NASDAQ:ON) and 3M Co (NYSE:MMM) are teaming up to develop futuristic roadway safety capabilities for vehicles built with automatic driving features.
The two companies, both giant in their respective spaces, will merge their cutting-edge image sensing technologies supported by vast experience in roadway safety to advance connected and automated vehicle technology further.
Contribution to the Partnership
The two partners will showcase their brainchild at the CES 2019 in Las Vegas, Nevada. ON Semiconductors brings its AR0234AT CMOS image sensor to the table whereas, 3M comes aboard with its proprietary next-generation digitally-enabled Smart Code sign technology together with decades of experience in roadway safety.
The partners will integrate the two technologies after which they shall exhibit the result in the ON Semiconductor’s demo room at the Venetian, level 3, Murano 3302 & 3303.
Partners’ Remarks on the Collaboration
Ross Jatou, Vice President and General Manager, Automotive Solutions Division, Intelligent Sensing Group at ON Semiconductor said that they are leveraging on their sensor technology to provide more visuals, he added that. “Working with 3M’s advanced materials technology enables our sensors to deliver additional information from enhanced infrastructure to further assist drivers beyond traditional Advanced Driver Assistance Systems (ADAS) and pave the way towards autonomous driving.”
Dr. Daniel Chen, Vice President and General Manager, 3M Transportation Safety Division said that to achieve full autonomy, developers will need to create a driving ecosystem where vehicles can communicate with ease; this can be made possible through a partnership between automotive and safety industries and that is where their collaboration with ON Semiconductors comes to play.
Dr. Chen believes that their collaboration will possibly create an integrated system that will bring about safety and efficiency in connected and automated vehicles.
The joint project is in line with 3M’s mission to help enhance transportation safety and ON Semiconductor’s commitment to serving the market with industry-grade sensing technologies and solutions to automobile manufacturers and suppliers.
Companies’ Stock Performance
The project is a potential revenue generator for both partners given existing demand for safety tools in the autonomous vehicles space.
The news on the project’s success will shake up the company’s shares. ON Semiconductors might match its 52-week high. As of the recent trading session the company’s shares closed at $17.00.
The shares had opened the day at $16.64 trading to a high of $17.26 and a low of $16.55 during the session as of the just concluded business day the company had a valuation of $7.16 billion.
On the other hand, 3M’s have been less volatile for a while now. Looking at its previous closing price the stock has moved a modest -11.03% from its 90-day high and only 8.17% away from its 90-day low. However, on a broader view, the shares have shifted -26.35% from their 52-week high and 8.17% from its 52-week low.
As of the most recent trading session, the shares slammed 0.89% despite the industry’s surge to close at $190.88. The shares had opened at a price of $191.36 and traded to a high of $192.30 and a day’s low of $188.66. The stock has a long way to go to match its 52-week high of $259.77.