German semiconductor company Infineon Technologies has signed a memorandum of understanding (MoU) with Alibaba Cloud, the cloud computing subsidiary of the Chinese technology giant.
The pair will jointly promote and develop IoT applications within the fields of smart life and industry, with the aim of providing a digital upgrade to businesses and cities in China.
Infineon will incorporate its technologies and services, which range from cellular infrastructure to energy systems and smart security expertise, into Alibaba Cloud’s IoT operating system, AliOS Things.
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Infineon to bolster Alibaba Cloud’s AliOS Things
Infineon reported €7.1 billion sales of its semiconductor solutions, microelectronics, and related services in the 2017 fiscal year. And with 37,500 employees worldwide, the company has ambitions to develop its operations in mainland China. Alibaba Cloud has itself been expanding in recent times, opening new data centres across Asia and Europe.
Infineon will bring their own core IoT technology to the table and service offerings to bolster Alibaba Cloud’s AliOS Things IoT operating system.
A joint statement also confirmed that, “The two parties will further explore the planning, implementation and security standards of the IoT, enabling SMEs and individuals to deploy and access Alibaba Cloud in a low-cost, highly reliable manner.”
The idea is to provide customers with the development dividend promised by the IoT, without exposing them to security risk-related losses. The statement also confirmed that Alibaba Cloud and Infineon will collaborate on e-commerce channels.
The importance of collaboration
Wei Ku, VP of the Alibaba Group and GM at Alibaba Cloud IoT, stated that the MoU is representative of a need for collaboration to build a mutually beneficial IoT ecosystem.
“The construction and improvement of the IoT ecosystem requires gathering the advantageous resources and power of all parties,” he said.
This partnership combines Alibaba Cloud’s capabilities in operating systems with Infineon’s semiconductor technology solutions. We believe that this will effectively promote the deployment of IoT in smart industries.
For Infineon, the move also appears to be about developing the company’s existing business in China through Alibaba Cloud’s existing sales channels. “Infineon is committed to combining our advanced IoT semiconductor solutions with local experience,” said Andreas Urschitz, President of the Power Management & Multimarket Division at Infineon, “This partnership with Alibaba marks our efforts in this field.”
“Sustainable growth in mainland China is one of Infineon’s most important development strategies, and is also our long-term goal in the Chinese market,” said David Poon, VP of power management & multimarket, Infineon Greater China.
“We are very pleased to work with leading companies like Alibaba Cloud, and to join in creating an IoT service platform that meets the needs of the local market, helps companies achieve digitalization, and provides a driving engine for innovation and the development of smart cities in China.”
Internet of Business says
By collaborating more closely, Alibaba and Infineon can ensure greater integration of their products and create an ecosystem that offers customers a more appealing answer to their IoT needs. It also gives both companies access to the other’s customers, extending their reach. Infineon, in particular, will be eager to tap into the huge Chinese IoT market.
For its part, Alibaba signed a similar MoU with Siemens just last month, to build an industrial Internet of Things (IIoT) network in China.
The technology giant is also increasingly bringing its AI technology to the automotive sector. In April, it introduced its smart assistant to Daimler, Audi and Volvo cars.
In related news today, a new report examining the global distribution of intellectual property rights has revealed that China is dominating the rest of the world in cloud and AI patents.