Volkswagen Group commits $200 million to indigenous chip development in China

News, 6 November 2025

Volkswagen has announced a major step in its “In China, For China” strategy, pledging around US $200 million toward designing and developing its own system-on-chip (SoC) technology in China. Through its software arm CARIAD and Chinese tech firm Horizon Robotics, the joint venture CARIZON will build chips capable of 500–700 tera operations per second (TOPS) and aims for mass production within the next 3–5 years.

This move is a direct response to mounting competition in China’s EV and smart-vehicle market, where local brands have surged ahead. Volkswagen is looking to gain more control over its tech stack—from sensors and electronics to full vehicle architecture—while reducing reliance on external suppliers. By localising chip development and hardware deployment, Volkswagen hopes to better serve Chinese consumer needs and reclaim competitiveness in its largest global market.

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