(Nov 5): Volkswagen AG (VW) plans to develop its own advanced semiconductor chip to power advanced driver assistance systems as automakers seek more more control over their technology supply chains, which have been roiled by geopolitical tensions.
The chips will be developed in China, where VW and other global carmakers have fallen behind local manufacturers like BYD Co and Xiaomi Corp and their tech-laden vehicles. The so-called system-on-chip will be capable of powering Level 3 driver assistance, where a car can control itself under limited circumstances.
“By designing and developing the system-on-chip here in China, we are taking control of a key technology that will define the future of intelligent driving,” VW chairman Oliver Blume said at an event at China International Import Expo in Shanghai on Wednesday. The chip will be developed in conjunction with Carizon, a joint venture between VW’s software-arm Cariad and Chinese tech firm Horizon Robotics.
VW’s foray into advanced chipmaking comes as automakers face the increased threat of production outages from ruptured supply chains. Chip shortages during the Covid pandemic forced some manufacturers to reduce output or ship some cars without all their features. In recent weeks, carmakers including VW, BMW AG and Honda Motor Co have faced a supply crunch after Beijing blocked Nexperia from exporting from its facilities in China in retaliation for the Dutch government seizing control of the Chinese-owned chipmaker.
The new integrated chip is expected to be delivered within the next three to five years, and will also be key to VW’s roll-out of electric vehicles in China.
See also: Amazon sues to stop perplexity from using AI tool to buy stuff
The chip will have computing power of around 500 to 700 tera operations per second, processing data from cameras and sensors to “make driving safer, smoother and more intelligent”, VW said.
Chinese regulations currently allow advanced driver-assistance systems at Level 2, which means that a car can perform steering, acceleration and lane changes, but a human needs to monitor the driving at all times and keep their hands on the steering wheel.
However, authorities have permitted several carmakers to test more advanced Level 3 features.
Uploaded by Tham Yek Lee
