Volkswagen will make chips with STMicroelectronics, in the context of shortages

Volkswagen will make chips with STMicroelectronics, in the context of shortages


PARIS/BERLIN (Reuters) – German carmaker Volkswagen and French-Italian chipmaker STMicroelectronics will collaborate on new chips, the two companies said on Wednesday, amid a global shortage of semiconductors.

The move shows how Volkswagen, Europe’s biggest carmaker, is working to better manage the supply of microchips, which are found in an increasing number of next-generation low-carbon cars.

This is Volkswagen’s first direct partnership with Tier 2 and Tier 3 semiconductor suppliers.

Volkswagen’s software division, CARIAD, said in May that it will also release systems-on-chips Qualcomm for autonomous driving up to 4 levels.

Neither party has disclosed the financial implications of the deal, which makes STMicroelectronics one of Volkswagen’s key technology partners.

CARIAD and STMicro are ready to jointly develop a new chip, which will be part of the Stellar family of microcontrollers, the two companies said in a statement.

The two companies are “close to agreeing” that the Taiwan Semiconductor Manufacturing Company (TSMC) manufactures this chip, the statement said.

“With the planned direct cooperation with ST and TSMC, we are fully forming our entire semiconductor supply chain,” said Murat Aksel, Volkswagen’s head of procurement.

A global shortage of semiconductors has prevented automakers from achieving record books.

(Reporting by Mathieu Rosemain in Paris, Victoria Waldersee in Berlin; French version by Charlotte Lavin, editing by Kate Entringer)