The companies said that Germany’s Volkswagen and Franco-Italian chipmaker STMicroelectronics will co-develop a new semiconductor amid a global microchip crunch that has strained the car industry’s supply chain.
The move illustrates how Volkswagen, Europe‘s biggest carmaker, is striving to gain greater control over the supply of chips, found in an ever greater number of new generation and low-carbon emission vehicles.
It is Volkswagen’s first direct relationship with second-and third-rank semiconductor suppliers, a move executives have hinted at since the chip shortage hit the auto industry in late 2019.
Volkswagen software unit Cariad said in May it would also source system-on-chips from Qualcomm for autonomous driving up to Level 4 standards, in which the car can handle all aspects of driving in most circumstances with no human intervention.
A Cariad spokesperson said the new deal would not affect this partnership.
Neither party disclosed the financial implications of the deal, which makes STMicroelectronics one of Volkswagen’s top technological partners.
The companies said in a statement that they are set to co-design the new chip, which will be part of the Stellar microcontroller family of semiconductors.
Both companies are “moving to agree” that Taiwan Semiconductor Manufacturing Company (TSMC) will manufacture it, the statement said.
“With the planned direct cooperation with ST and TSMC, we are actively shaping our entire semiconductor supply chain,” said Murat Aksel, Volkswagen’s purchasing head.
“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 global semiconductor shortage has left automakers worldwide unable to service record-full order books with unfinished vehicles, clogging up warehouses for months with no clear end in sight.
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