Volkswagen Makes Its Own Chip In China With An Investment Of IDR 3.3 Trillion For Smart Cars

ID. BUZZ. (Photo: Volkswagen)

JAKARTA Volkswagen Group is committed to independently disbursing investments worth 200 million US dollars or around IDR 3.3 trillion for the development of a system-on-chip (SoC) chip in China. This investment is part of China's In China, For China strategy.

Where, as an effort to strengthen connectivity between software and their smart vehicle hardware. According to Chinese CARIAD CEO Han Sanchu, the investment demonstrates Volkswagen's commitment to building vertical systems that include smart driving algorithms, electronic and electrical architecture (E/E), to the development of SoC.

The chip, developed through the Carizon joint venture, the result of a collaboration between CARIAD and smart driving technology company Horizon Robotics, is planned to achieve mass production in the next three to five years, as reported by Carnewschina, Wednesday, November 5.

The chip is projected to have a computing capacity of between 500 to 700 TOPS (operation rate per second) in support of advanced driving functions. Volkswagen targets the chip to be used in models equipped with an L3-level driver assistance system and above in the Chinese market.

This allows for deeper integration between the algorithm, hardware, and vehicle core system. The move comes amid intense competition in China's automotive market, especially from fast-growing domestic electric vehicle manufacturers.

Volkswagen recognizes the importance of innovation in smart driving technology to maintain its competitiveness. With the development of this standalone chip, Volkswagen is also working to reduce its dependence on supply from third parties, a major challenge that hit the global auto industry as a result of the semiconductor crisis in recent years.

Automotive experts assess that Volkswagen's move marks an important shift in the world's automotive industry, where software and semiconductor mastery is now the main foundation of future smart vehicles. Artificial chips are believed to strengthen Volkswagen's position in the transition to smarter and more integrated mobility.