Photo above: SMT production line at RH Electronics plant in Nazareth Elite, Israel
Many Electronics Manufacturing Service providers are facing now a new reality, in which the road to Autumotive Manufacturing contracts sometime must cross an investment junction. Now also in Israel: Foresight Autonomous Holdings Ltd. (Nasdaq: FRSX), signed a non-binding Development and Investment Agreement with RH Electronics Ltd., a primary manufacturing and assembly of electronic systems contractor from Nazareth Elite, Israel.
According to the agreement, RH will buy 1% of the issued and outstanding share capital of Foresight for $1 million (89% premium over the share market price), and start a development and production project of Foresight’s automotive vision systems. RH, directly and/or through its approved contractor, Tonson Labs, will initiate a multi-phase project to develop chip-based FPGA and ASIC solutions for QuadSight, Foresight’s four-camera vision system.
Prototyping and Mass Production under one Roof
Initially, RH will lay the infrastructure for an FPGA-board platform. Following completion of phase 1 and successful pass of acceptance tests, RH is planned to proceed towards development and manufacturing of an ASIC chip for the QuadSight system. The parties are targeting to enter, within two months, into a binding agreement that gives RH a “right of first refusal” for the manufacturing of QuadSight systems.
“This is an important strategic alliance,” said CEO of Foresight, Haim Siboni. “RH’s intended investment at a premium over the share market price marks a confidence in Foresight’s technology. RH’s engineering, developing and manufacturing capabilities are of great value to Foresight, making them an ideal partner for our future roadmap.” The Chairman of the board of RH Electronics, Yacov Rozenberg, said that the collaboration allows RH to make a step into the automotive market. “This agreement is expected to give RH exclusive rights to new production lines that will surely generate growth for company.”
Foresight’s vision systems are based on 3D video analysis, advanced algorithms for image processing and sensor fusion. The company’s systems are targeting the Advanced Driver Assistance Systems (ADAS), semi-autonomous and autonomous vehicle markets. Electronics provides turnkey solution of design, engineering, testing, manufacturing and subcontracting services.