Volkswagen partners with STMicroelectronics to co-design semiconductors

VOLKSWAGEN’S (VW) software unit will start designing chips for the first time, partnering with STMicroelectronics to co-develop semiconductors for its cross-brand single software platform.

With the agreement, VW's Cariad and STMicroelectronics plan to source the key components from global top chipmaker Taiwan Semiconductor Manufacturing (TSMC), they said on Wednesday (Jul 20).

"With the planned direct cooperation with ST and TSMC, we are actively shaping our entire semiconductor supply chain," Murat Aksel, Volkswagen's procurement head, said in a statement. "We're ensuring the production of the exact chips we need for our cars and securing the supply of critical microchips for years to come."

The agreement is the second chip-focused partnership for Volkswagen's electrification push. Cariad said in May it had signed a deal with Qualcomm to assist with automated driving applications.

Volkswagen's Cariad unit, set up in 2020 to pool previous software efforts, has struggled with several setbacks as it aims to create a unified software platform for the production launch of VW brand's Trinity project in 2026.

The division has so far released a toolkit for VW's ID series of electric cars, the first model of which debuted with missing features. Development of a premium software architecture for the Audi and Porsche brands has been plagued by infighting, delaying models including a battery-powered version of Porsche's Macan compact SUV. BLOOMBERG

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