by Mathieu Rosemain and Victoria Waldersee
PARIS/BERLIN (Reuters) – German automaker Volkswagen and Franco-Italian chipmaker STMicroelectronics will co-develop a new chip, the two companies said on Wednesday, amid a global shortage of semiconductors.
The move illustrates how Volkswagen, Europe’s largest automaker, is working to better control the supply of microchips, which are found in increasing numbers in next-generation low-carbon vehicles.
This is Volkswagen’s first direct cooperation with Tier 2 and Tier 3 semiconductor suppliers.
Volkswagen’s software unit, CARIAD, said in May that it would also source systems on a chip from Qualcomm for autonomous driving up to Tier 4 standards.
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 design the 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” to have Taiwan Semiconductor Manufacturing Company (TSMC) manufacture the chip, the statement said.
“With the planned direct cooperation with ST and TSMC, we are actively shaping our entire semiconductor supply chain,” said Murat Aksel, head of procurement at Volkswagen.
The global shortage of semiconductors has prevented automakers from fulfilling record order books.
(Reporting Mathieu Rosemain in Paris, Victoria Waldersee in Berlin; French version Charlotte Lavin, editing by Kate Entringer)
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