The fast-growing consumer drone industry should not copy the model of personal computer and smartphone businesses where one chip company controls nearly the whole market, said a senior official from DJI Technology Co Ltd. “If only one company controls nearly the whole market with excessively high royalty payments, it will harm technology innovation of the whole industry,” Shao Jianhuo, vice-president of DJI, told China Daily…Full Article: China Daily Apr 2016

Key Points

  • In 2015, California-based Intel (world’s largest PC chipmaker) invested US$60 million in Yuneec International, a Hong Kong-based drone manufacturer.
  • The Vice President of DJI Technology stated that DJI would cooperate with various computer chip companies, but would also “keep a close eye on chip technology development.”

ChinaAg Comments

  • In March 2016, DJI Technology announced they would train 10,000 people across China to operate agriculture-specific drones. Additionally, the Shenzhen-based company stated it would establish 100 after-sales service centers and offer subsidies (to ~10,000 people) boost the use of drones on farms.
  • As of early 2016, the market penetration of agricultural drones was 50% in the USA and Japan, but only 3% in China (~4,000 agricultural drones in use as of early 2016).
  • In November 2015, Guangdong’s DJI Technology Co. developed a drone that could spray pesticides on four hectares of farmland every hour.
  • Founded in 2006 and headquartered in Shenzhen, southern China, DJI Technology is a leading Chinese manufacturer of unmanned aerial vehicles (UAV). In November 2015, DJI launched its eight-rotor Agras MG-1, an agricultural UAV that can hold 10 liters (~2.6 gallons) of liquid (e.g. pesticides).

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