Volkswagen develops its own semiconductors for autonomous driving

Autonomous Driving VW Announces Its Own AI Chip

2025-11-06 Source: dpa 2 min Reading Time

In the midst of the chip crisis, Volkswagen announces that it will develop semiconductors for automated driving in the future. VW is therefore investing in its joint venture Carizon.

The first self-developed chips from China are expected in three to five years.(Image: Volkswagen AG) — The first self-developed chips from China are expected in three to five years.
(Image: Volkswagen AG)

In the race for development in the field of autonomous driving, the Volkswagen Group aims to develop crucial chips for the technology itself in China. VW is thus taking control of a "key technology that will determine the future of intelligent driving," said Group CEO Oliver Blume in Shanghai at the opening of China's International Import Expo (CIIE).

Carizon, a joint venture between VW's software subsidiary Cariad and the Chinese computing specialist for autonomous driving, Horizon Robotics, is set to develop the chip that processes data from cameras and sensors for driving. VW expects delivery within the next three to five years. For the first time, Carizon is not only developing software for automated driving but also an AI chip, said Cariad board member Peter Bosch.

"Today is a special moment," said Blume. The Volkswagen Group's strategy is "our five-year plan," he explained. The mission is to become a pioneer in automotive technology, Blume stated.

Why VW is Now Developing Chips

With its in-house China chip, VW aims to compete with Chinese rivals in assistance systems. Wolfsburg is investing more than 200 million euros in the new project, according to corporate sources. In the world's largest automotive market, where the business of German brands is increasingly shrinking, local manufacturers are especially pushing ahead against their foreign competitors in assistance systems. Well-known tech companies are assisting major brands in development or are already active in the automotive business themselves, such as smartphone manufacturer Xiaomi.

Fatal accidents related to driver assistance systems, however, had raised questions about safety. China's regulators warned manufacturers against making excessive promises for the technology.

Driver assistance systems are classified into five levels — from cruise control (level one) to fully autonomous driving (level five). In China, brands are currently advancing to level three — the level VW is targeting with the chip. The person behind the wheel could temporarily and in certain situations let the car do the driving and, for instance, read a newspaper.

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Date: 08.12.2025

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