Volkswagen reportedly plans to develop its first internally designed chip to support advanced driving functions in its cars for the Chinese market.
The chip will process data from vehicle cameras and sensors and is expected to achieve roughly 500–700 tera operations per second (TOPS).
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The German carmaker aims to deliver the chip within three to five years, the company said.
Development will be carried out by CARIZON, the joint venture between Volkswagen and China-based Horizon Robotics, Reuters reported.
According to Frank Han, China CEO of Volkswagen subsidiary Cariad, the chip will be produced using a 3–4 nanometre process node and there are few options among foundries able to manufacture it at scale.
Volkswagen intends to integrate the processor into the third generation of its China Electrical Architecture (CEA).
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By GlobalDataHan added that 80% of Volkswagen Group cars sold in China by 2030 will be built on the CEA, and that the first CEA model using Horizon Robotics’ J-series chips is slated for release at the end of this year.
Volkswagen is intensifying efforts to strengthen its foothold in China, its biggest market. The strategy focuses on enhancing product competitiveness with technologies developed by or in collaboration with local firms to better compete with Chinese rivals, highlighted Reuters.
The group has also deepened collaboration with Xpeng to jointly create electronics architecture for additional models in the country.
Volkswagen reported a net loss of €1.07bn for the third quarter of 2025, compared with a net income of €1.56bn in the same quarter a year earlier.
This marked the group’s first quarterly loss since the second quarter of 2020, when the coronavirus pandemic adversely affected results.
