Japanese automotive components supplier Denso Corp. has taken a stake in German chipmaker Infineon Technologies, to accelerate the development of technology to achieve vehicle systems such as automated driving.

Founded in 1999, Infineon Technologies creates and manufactures microcomputers for control applications, and semiconductor sensors and products for electrified vehicles.

Infineon — which currently has a market capitalization of nearly $23 billion — said the two companies have been working together for more than 10 years and that Denso wanted to underline the partnership with a small equity stake.

Denso's investment comes as the company recognizes that with increased functionality in vehicles and advanced electronic control, demand for semiconductor products will grow exponentially. Next-generation vehicle systems required for automated driving, electrification and connected cars are becoming more sophisticated and will feature more advanced technology. The company said it has been working with chip suppliers like Infineon to enhance in-vehicle semiconductor product development.