Volkswagen Group plans to design and develop advanced automotive chips in China through CoolCore, a joint venture between its software unit CARIAD and Horizon Robotics, the company said on Wednesday at the 8th China International Import Expo in Shanghai.
The move marks a deepening of Volkswagen’s localization strategy in its largest market, as the German automaker accelerates efforts to strengthen its technological footprint amid intensifying competition from domestic EV makers.
The new system-on-chips (SoCs) will deliver computing power of 500 to 700 TOPS per chip and are expected to enter mass production within three to five years, Volkswagen said.
Han Sanchu, CEO of CARIAD China, called the project a strategic investment of about US$200 million, aimed at boosting the company’s capability to integrate software and hardware for intelligent and connected vehicles.
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Insights
What is the significance of Volkswagen's investment in automotive chips in China?
How does the joint venture between CARIAD and Horizon Robotics fit into Volkswagen's localization strategy?
What are the expected capabilities of the new system-on-chips (SoCs) being developed?
How is the automotive chip market in China currently performing?
What competition does Volkswagen face from domestic EV manufacturers in China?
What are the implications of Volkswagen's investment for the future of automotive technology in China?
How might the collaboration between CARIAD and Horizon Robotics influence the automotive chip industry?
What challenges does Volkswagen anticipate in the development and production of automotive chips?
What are the expected timelines for mass production of the new automotive chips?
How does Volkswagen's investment compare to other major automotive companies' investments in chip technology?
What role do software and hardware integration play in the development of intelligent and connected vehicles?
What technological advancements are essential for the future of automotive chips?
Are there any regulatory changes in China affecting the automotive chip sector?
What historical trends can be observed in the automotive chip industry?
How might Volkswagen's strategy influence its market position in the coming years?
What are the potential environmental impacts of increased automotive chip production in China?
