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Volkswagen to Develop Own Assisted Driving Chip in China

Volkswagen partners with Horizon Robotics to design an AI chip enhancing assisted driving, aiming to regain market share and reduce reliance on global semiconductor supply chains.

  • On Wednesday, German car manufacturing giant Volkswagen said it will develop an in-house assisted driving chip for its China business as it seeks to recover from sagging sales.
  • Volkswagen is seeking to insulate itself from global semiconductor tensions as Washington has expanded export controls in recent years, while smart driving capabilities have become a key battleground in China's domestic auto market.
  • Design and production will be handled by a joint venture between CARIAD, Volkswagen's software company, and Horizon Robotics, Chinese technology company, with delivery expected within three to five years and focus on localized implementation in China.
  • Volkswagen described the move as deepening an 'In China, for China' strategy, and said it will develop new electric and hybrid vehicles plus an assisted driving system tailored to China to feed technological achievements back into the global business.
  • Amid wider supply-chain rows such as the Nexperia dispute, Volkswagen said it aims to control a key technology shaping the future of intelligent driving.
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29 Articles

Lean Left

Volkswagen is taking a big step in the race to develop “autonomous driving” technology by creating its own artificial intelligence chips in China. Chief Executive Oliver Blume said that producing the “System-on-Chip” chip in China gives the company control over a technology that will define the future of “intelligent driving.” The project is being developed by Carizon, a joint venture between Volkswagen subsidiary Cariad and Chinese company Hori…

Left

Volkswagen announces that it intends to develop its own processor in China with a company there, and hopes for market advantages. The process illustrates shifting global economic conditions.

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Concerns about missing China chip deliveries and development pressure in autonomous driving plague the car industry. VW is now announcing its own chip.

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Bloomberg broke the news in United States on Tuesday, November 4, 2025.
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