TAIPEI (Taiwan News) — Taiwanese electronics manufacturer Foxonn and chipmaker Nvidia Corp on Tuesday (Jan. 3) announced a strategic partnership to develop automated and autonomous vehicle platforms.

Under the deal, Foxconn will be producing electronic control units (ECUs) based on Nvidia’s Drive Orin chip, according to a press release from the two companies. Nvidia’s Drive Orin system-on-a-chip is designed for computing in connected and autonomous vehicles, according to Reuters.

Meanwhile, Foxconn manufactured electric vehicles (EVs) will feature Drive Orin ECUs and Nvidia’s Drive Hyperion sensors for highly automated driving. Using Nvidia’s technology to build EVs will help the Taiwanese company speed up its time to market, while also cutting down on development costs.

The deal will help both companies meet growing demand for electric vehicles. The global auto sector is expected to spend a collective US$526 billion (NT$16.15 trillion) on EVs through 2026, The Wall Street Journal (WSJ) cited consulting firm AlixPartners as saying.

Foxconn has been making several moves in the EV space. In November, it entered into a joint venture with Saudi Arabia’s sovereign-wealth fund to produce electric vehicles, according to The WSJ.

The world’s largest contract electronics maker also said in November it would invest US$170 million in EV startup Lordstown Motors Corp, which is building its first electric pickup truck at a former GM plant in Ohio. Foxconn and Lordstown Motors are planning to jointly develop their first EV together, The WSJ said.

Nvidia has been a long-time hardware supplier of infotainment systems in vehicles, per The WSJ. The chipmaker is now moving into software and chips that run driver-assistance systems.