3M and ON Semiconductor Collaborate to Improve Road Safety

On January 9, 3M (MMM) announced that it has entered into a collaboration with ON Semiconductor to improve the road safety. ON Semiconductor’s image sensing technology and 3M’s roadway safety experience should improve the navigation for vehicles that are equipped with automated driving features. However, 3M didn’t disclose the financial aspects of the collaboration.

ON Semiconductors will display the AR0234AT CMOS image sensor with 3M’s digitally enabled Smart Codesign technology at the CES 2019 event in Las Vegas, Nevada.

Daniel Chen, 3M’s vice president and general manager of the transportation safety division, said, “Full autonomy will require integrated systems that allow cars to communicate with each other and the driving ecosystem. Achieving this requires collaboration between the automotive and roadway safety industries. That is why we’re excited to collaborate with ON Semiconductor. Together we’ll take the first steps in creating an integrated system that can help make connected and automated vehicles safer and more efficient.”

3M has been slow in 2019 compared to its industrial peers. In 2019, 3M has gained 0.9% and has underperformed the S&P 500 (SPY), which has gained 3.1% during the same period. Honeywell (HON), Stanley Black & Decker (SWK), and Illinois Tool Works (ITW) have gained 2.7%, 9.4%, and 2.6%, respectively.