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Volkswagen Group has announced a new semiconductor procurement strategy, highlighted by a joint sourcing initiative with Rivian. Revealed at the 4th Semiconductor Summit during IAA Mobility in Munich, the plan is designed to streamline procurement, reduce costs, and secure the supply of critical components for future vehicles.
Key Highlights
- Volkswagen Group has launched a new direct procurement model in partnership with Rivian Automotive and Volkswagen Group Technologies.
- The collaboration covers more than 50 semiconductor categories, including essential components like microcontrollers and power transistors.
- The initiative aims to reduce costs, secure the chip supply, and improve operational efficiency for both manufacturers.
- The number of semiconductors in vehicles has grown dramatically, with a modern EV like the ID.7 using around 18,000 chips, compared to about 30 in the first-generation Golf.
- The strategy strengthens supply chain transparency and resilience while reducing complexity through direct negotiations with semiconductor companies.
A Proactive and Unified Strategy
In response to technological advancements and past supply chain challenges, the Volkswagen Group has restructured its semiconductor strategy. The approach focuses on building a robust ecosystem through strong, collaborative relationships with semiconductor manufacturers and direct suppliers.
Key goals of the strategy include reducing component complexity and ensuring transparent volume planning across the supply chain. By negotiating directly with chip makers and bundling volumes, Volkswagen aims to improve cost efficiency and gain the ability to make faster technical and software adjustments. The Group is also taking a more active role in defining the specifications for critical semiconductors that directly impact key vehicle functions, thereby strengthening its in-house technical capabilities.
New Procurement Model with Rivian
A central element of the strategy is the joint sourcing initiative with Rivian for the companies’ new joint venture. This model allows Volkswagen Group and Rivian to share responsibility for sourcing high-tech semiconductors across dozens of categories. The chips procured through this partnership will be used in relevant vehicle models from both automakers, which will be based on the joint venture’s electronic zonal architecture in Europe and North America.
According to company officials, this collaboration combines Volkswagen’s global scale with Rivian’s experience in developing software-defined vehicles (SDVs). The model allows the joint venture’s technology teams to focus on innovation while the partnership delivers tailored, large-scale solutions.
About the Semiconductor Summit
Hosted annually by the Volkswagen Group, the Semiconductor Summit serves as a strategic platform for aligning industry visions and fostering cooperation. The event brings together top executives from leading semiconductor companies, key automotive suppliers, and research institutions to advance innovations critical to the future of mobility. The summit underscores the growing interconnection between the automotive and semiconductor industries.
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