Volkswagen and Horizon Robotics Partner to Develop Smart Driving Chip for China
Shanghai - Volkswagen is bolstering its technological capabilities in China with the development of an in-house chip, created through its joint venture with Chinese firm Horizon Robotics, CARIZON. The chip is designed to power advanced smart driving features in Volkswagen’s next generation of vehicles specifically for the Chinese market.
The new chip will process data from vehicle cameras and sensors, boasting a computing power of 500 to 700 tera operations per second (TOPS). Volkswagen anticipates delivering the finished product within the next three to five years.
According to Volkswagen, this initiative aims to deepen its “in China, for China” research and development efforts. The company has not yet indicated whether the chip will be utilized in vehicles sold outside of China. Production arrangements for the chip remain undisclosed, though Cariad China CEO Frank Han noted “few options” exist for foundries capable of mass production. The chip will be manufactured using a three-4 nanometre processing node.
This move reflects Volkswagen’s strategy to enhance its competitiveness in China, its largest market, by collaborating with and developing technologies alongside Chinese companies. The company is also expanding its partnership with Xpeng to jointly develop electronics architecture for additional models within China.
Volkswagen’s sales in China have declined in recent years, falling to 2.75 million units in 2023, down from a peak of over four million units in 2018. In 2023, the company lost its position as China’s best-selling automotive brand to BYD, which has experienced notable growth with its electric and plug-in hybrid vehicles.
Volkswagen plans to integrate the chip into its third generation of China Electrical Architecture (CEA). the company expects 80 percent of Volkswagen Group cars sold in China by 2030 to be developed using CEA, with the first model utilizing Horizon Robotics J-series chips scheduled for release at the end of this year, according to Han.
