Apple Inc, which laid off dozens of employees from its secretive car project this month, is increasingly seeking help from outside companies with expertise in vehicles.
The tech giant has been talking with McLaren, a British automaker known for its Formula One racecars, about an investment in the company, according to two people briefed on the talks who asked to remain anonymous because the discussions were confidential.
Apple is also in talks with Lit Motors, a San Francisco startup that has developed an electric self-balancing motorcycle, about a potential acquisition, according to three people who spoke on the condition of anonymity.
Apple has already hired several former Lit Motors engineers.
Even as many Silicon Valley companies — including Google, Tesla Motors Inc and Uber Technologies Inc — have embarked on electric and driverless car initiatives, Apple has kept quiet.
Yet internally, it has pursued a car project — called Project Titan — that has had ups and downs in leadership and direction. The layoffs at the project this month came after the appointment of an Apple veteran, Bob Mansfield, to take over the effort.
Inside Apple, employees recently described the firm’s efforts to build a car as a project lacking vision and in complete disarray.
The recent layoffs, followed by Apple’s pursuit of talent and expertise from outside companies, are part of the company’s effort to “reboot” the project, said people with knowledge of the layoffs.
Apple declined to comment, as did Lit Motors.
Wayne Bruce, a spokesman for McLaren, said in an emailed statement that the company was “not in discussion with Apple in respect of any potential investment.”
However, McLaren did not deny having had conversations with Apple.
In a telephone call, Bruce added: “The nature of our business means we regularly have conversations with all sorts of parties, but those conversations remain confidential. We’re not in a position to confirm or deny any previous conversation.”
A partnership with McLaren would allow Apple to tap into the carmaker’s high-end automotive technology, forged by years of building F1 racecars and selling sports cars topping US$1 million.
For years, McLaren has been recognized as an innovator in automotive technology. As one example, the company pioneered the use of a single device to control a car’s engine, transmission and electrical systems.
McLaren also invented a simulator for designing and testing F1 cars, a technology that it recently began marketing to mainstream automakers.
McLaren’s sales are steadily growing, but the company’s bet on research took a bite from its profit. Last year, McLaren, which is backed by private shareholders, sold 1,654 cars, five more than the year before. Its profit slid 64 percent to about US$7 million, from US$19.4 million in 2014, in part because of increased spending on research.
An acquisition of Lit Motors could also help Apple rethink its strategy with building an electric car and bring engineering talent into the company.
For years, Lit Motors has worked on the C-1, an electric motorcycle that relies on two large gyroscopes, which prevent it from tipping over. The two-wheeler was designed to have the efficiency of a bicycle and motorcycle but the safety of a car.
The startup’s plans stalled after CEO Daniel Kim was involved in a motorcycle crash last year.
COMPETITION: AMD, Intel and Qualcomm are unveiling new laptop and desktop parts in Las Vegas, arguing their technologies provide the best performance for AI workloads Advanced Micro Devices Inc (AMD), the second-biggest maker of computer processors, said its chips are to be used by Dell Technologies Inc for the first time in PCs sold to businesses. The chipmaker unveiled new processors it says would make AMD-based PCs the best at running artificial intelligence (AI) software. Dell has decided to use the chips in some of its computers aimed at business customers, AMD executives said at CES in Las Vegas on Monday. Dell’s embrace of AMD for corporate PCs — it already uses the chipmaker for consumer devices — is another blow for Intel Corp as the company
ADVANCED: Previously, Taiwanese chip companies were restricted from building overseas fabs with technology less than two generations behind domestic factories Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), a major chip supplier to Nvidia Corp, would no longer be restricted from investing in next-generation 2-nanometer chip production in the US, the Ministry of Economic Affairs said yesterday. However, the ministry added that the world’s biggest contract chipmaker would not be making any reckless decisions, given the weight of its up to US$30 billion investment. To safeguard Taiwan’s chip technology advantages, the government has barred local chipmakers from making chips using more advanced technologies at their overseas factories, in China particularly. Chipmakers were previously only allowed to produce chips using less advanced technologies, specifically
MediaTek Inc (聯發科) yesterday said it is teaming up with Nvidia Corp to develop a new chip for artificial intelligence (AI) supercomputers that uses architecture licensed from Arm Holdings PLC. The new product is targeting AI researchers, data scientists and students rather than the mass PC market, the company said. The announcement comes as MediaTek makes efforts to add AI capabilities to its Dimensity chips for smartphones and tablets, Genio family for the Internet of Things devices, Pentonic series of smart TVs, Kompanio line of Arm-based Chromebooks, along with the Dimensity auto platform for vehicles. MeidaTek, the world’s largest chip designer for smartphones
TECH PULL: Electronics heavyweights also attracted strong buying ahead of the CES, analysts said. Meanwhile, Asian markets were mixed amid Trump’s incoming presidency Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) shares yesterday closed at a new high in the wake of a rally among tech stocks on Wall Street on Friday, moving the TAIEX sharply higher by more than 600 points. TSMC, the most heavily weighted stock in the TAIEX, rose 4.65 percent to close at a new high of NT$1,125, boosting its market value to NT$29.17 trillion (US$888 billion) and contributing about 400 points to the TAIEX’s rise. The TAIEX ended up 639.41 points, or 2.79 percent, at 23,547.71. Turnover totaled NT$406.478 billion, Taiwan Stock Exchange data showed. The surge in TSMC follows a positive performance