This is a remarkable development! German auto company VW will now build its own AI chips in China .
This doesn’t come as a surprise for anyone following the auto industry. China exports more cars than any other nation and is the world leader in electric vehicles. If you are an automaker that is not working with China and investing in China in the future, you will simply be left behind.
As VW CEO Oliver Blume states:
“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”
In a strategic push towards autonomous driving, Volkswagen is taking a monumental step by developing its own artificial intelligence (AI) chips in the world’s largest auto market. This move is part of a five-year plan to establish the company as a leader in automotive technology.
The development will be handled by Carizon, a joint venture between Volkswagen’s software arm, Cariad, and Horizon Robotics, a Chinese specialist in autonomous driving computing. This collaboration will not only focus on software for automated driving but will also venture into creating a dedicated AI chip. This chip is expected to be ready for deployment in the next three to five years, processing data from cameras and sensors to power the next generation of intelligent vehicles.
This announcement comes at a critical time, as the global chip market faces uncertainty. By investing in its own chip development within China, Volkswagen is securing its supply chain and taking control of its technological destiny. This is a clear signal that the future of the automotive industry is deeply intertwined with the innovation and manufacturing power of China.



