According to the experts, this is a trend according to which car manufacturers are moving upstream to secure the supply of chips, and indeed Volvo and Hyundai have announced investments in the field
The car manufacturers began to take steps to ensure the supply of their chips, among other things, through self-design of chips. In this context, Volkswagen announced a collaboration with the Swiss semiconductor manufacturer STMicroelectronics to develop automotive chips for its cars.
Volkswagen and its software unit Cariad launched a system on a chip (SoC) with STMicroelectronics to be manufactured for ST by TSMC. The product is part of Volkswagen’s strategy to for the first time enter into direct relationships with Tier 2 and Tier 3 semiconductor suppliers. Cariad will direct VW’s Tier 1 suppliers to use only the SoC developed in collaboration with ST for Volkswagen’s vehicles, which it hopes will ensure the chip supply of The company years in advance.
Chip supply shortages over the past two years have resulted in most major automakers cutting production or producing vehicles without certain features made possible by electronic systems.
The chips will be designed specifically for the needs of automotive systems in providing network, drive and energy management functionality, as well as convenience electronics. All new generations of Volkswagen vehicles will be based on the unified and scalable hardware and software platform. By contributing the automaker’s specific target and functionality requirements, the partnership will extend ST’s automotive microcontroller architecture.
ST’s processors will allow Cariad to develop common software that will map future functions to the chips through an online upgrade and add multiple functions to each electronic control unit, while reducing the number of chips in the vehicle.
“With the planned collaboration with ST and TSMC, we are actively shaping our entire semiconductor supply chain. We guarantee the production of the exact chips we need for our cars and guarantee the supply of the critical chips for years to come,” said Murat Axel, a member of the Volkswagen Board of Directors.
Two other car companies announced the diversification of the chip supply chain – Volvo and Hyundai. Another agreement was signed between NXP and Foxconn – on cooperation in the production of chips for electric cars.