Automakers have been making a beeline for Central California in recent years, setting up a number of research and engineering facilities in the shadows of such consumer electronics giants as Google and Apple. But could the migration be turning around?
A major Silicon Valley firm, Nvidia, which made a name supplying high-end graphics for the gaming industry, is reversing the trend by setting up a technical center in Ann Arbor, less than an hour outside to Detroit, the traditional epicenter of the auto industry.
Danny Shapiro, director of automotive for Nvidia Corp., said the new facility will help the company’s growing team of Michigan-based engineers and executives work with automakers and suppliers to develop the next generation of infotainment , navigation and driver assistance programs – all of which can make driving safer and more enjoyable.
“Silicon Valley is the future, Detroit is the past,” said Shapiro. “That’s the conventional wisdom. Well, the conventional wisdom isn’t quite right. We’ve been investing in Michigan for years and we’re accelerating these efforts by opening the Nvidia Technology Center.
And Nvidia isn’t alone. Among a number of other high-tech firms opening centers in Southeast Michigan are Microsoft and Google, Shapiro noted, during an annual automotive industry confab in Traverse City, Michigan.
“This is where consumer electronics and safety advancements are being made that will change the driving experience for all of us,” the executive added. “Nvidia has been fueling this trend for years. A number of our employees live in the area and are working closely with car companies.”
While there’s a small but growing presence of high-tech start-ups within the Motor City itself, many of the firms setting up shop in Michigan have been choosing to go to Ann Arbor, an hour west of Detroit and the home of the University of Michigan.
“All of this activity has helped make Ann Arbor a high-tech hub and not just for the Detroit area,” Shapiro noted.
Nvidia, which is based in Santa Clara, California, has already hired approximately a half dozen employees and does expect to expand its Michigan workforce, including hardware and software engineers, designers, marketers, business developers and customer support, as the business grows and customer demand increases.
Michael Finney, president of the Michigan Economic Development Corp., said Nvidia already powers in-dash instrument clusters as well as navigation and information displays in more than 4 million vehicles from automakers such as Audi, Bentley, BMW, Lamborghini, Maserati, Rolls Royce, Tesla and Volkswagen.
Nvidia is trying just to stay in business now that the discrete GPU market is giving way to APUs. Nvidia’s only source of revenue is disappearing rapidly.