Volkswagen’s CARIAD and STMicroelectronics to Co-Develop Chip for Software-Defined Vehicles

CARIAD, the software unit of Volkswagen Group, and STMicroelectronics will shortly launch the joint development of an automotive system-on-chip (SoC).

Together, CARIAD and ST are developing perfectly tailored hardware for connectivity, energy management, and over-the-air updates making vehicles fully software-defined, secure, and future-proof. The planned cooperation targets the new generation of Volkswagen Group vehicles that will be based on the unified and scalable software platform.

At the same time, the parties are moving to agree that TSMC, one of the world’s leading dedicated semiconductor foundry companies, will manufacture the SoC wafers for ST. With this move, CARIAD aims to secure the chip supply for the Volkswagen Group’s cars years in advance.

As part of its semiconductor strategy, CARIAD will enter into direct relationships with semiconductor suppliers at the Tier 2 and Tier 3-level for the Volkswagen Group for the first time.

In the future, CARIAD plans to direct Tier 1 suppliers of the Group to use only the SoC co-developed with ST and ST’s standard Stellar microcontroller for CARIAD’s zone architecture.

“We are about to launch a groundbreaking new cooperation model for the Volkswagen Group. With the planned direct cooperation with ST and TSMC, we are actively shaping our entire semiconductor supply chain. We’re ensuring the production of the exact chips we need for our cars and securing the supply of critical microchips for years to come,” says Murat Aksel, Volkswagen Group’s Board Member for Purchasing. “In this way, we are setting new standards in strategic supply chain management.”

This co-development is a first for CARIAD and ST. “With the co-development of the system-on-chip with ST ahead of us, we are consistently pursuing our semiconductor strategy. The SoC we are designing will be optimally matched to our software – without compromise. In this way, we can offer our Group’s customers the best performance for their cars,” says CARIAD CEO Dirk Hilgenberg. 

“ST designed its Stellar architecture specifically to facilitate the transition to software-defined vehicles and CARIAD’s decision to work with ST to fit the requirements and functionalities of the Volkswagen Group’s next-generation vehicles highlights the success of our approach,” said Marco Monti, President of ST’s Automotive and Discrete Products Group.