VW secures ST Microelectronics as further partner in chip development

Volkswagen's software unit Cariad announced on Wednesday that it was entering a partnership with Swiss-based ST Microelectronics (STM) to develop microchips for networking in its new models, reported dpa.

Cariad said the aim was to produce processors and systems that enable control units and complex control functions to link more closely.

VW has announced that it will pursue its own chip design, but initially aims to develop hardware in cooperation with other companies. It has already reached partnership agreements with Bosch in Germany and Qualcomm in the United States.

The collaboration with STM will mean a shift from current practice in chip procurement. VW aims to purchase important components directly from the providers of electronic equipment, and not only from its traditional automotive sector suppliers.

Murat Aksel, VW management board member responsible for procurement, said: "We are ensuring that precisely those chips are produced that we need for our cars and are securing supply with the microchips needed for years ahead."

Supply chain problems, affecting chips in particular, have caused severe problems for the company over the past year resulting in production plants being shut down for extended periods.

Vehicles with additional equipment currently require up to 100 individual control units. VW's aim is to standardize, set technical standards and cut manufacturing costs.

Coordination problems between the group's brands have led to setbacks at Cariad. Work at VW, Audi and Porsche is currently proceeding in parallel ahead of the completion of a unified platform.

Cariad chief executive Dirk Hilgenberg sees the joint project with STM as important in this regard. "Use of a unified, ideally adapted architecture in all control devices provides us with a huge boost for developing our software platform efficiently," he said.