Volkswagen Group outlined a new semiconductor procurement strategy at the 4th Semiconductor Summit held during the IAA Mobility auto show, detailing a joint initiative with Rivian and Volkswagen Group Technologies to manage sourcing across more than 50 semiconductor categories.
The strategy covers components such as microcontrollers, power transistors, and printed circuit boards, aiming to enhance supply chain resilience, reduce costs, and simplify procurement for Volkswagen’s future vehicle portfolio. Measures include transparent volume planning, bundled purchasing, and improved component tracking.
“Semiconductors are a key driver of automotive innovation, powering electrification, enhancing performance and safety, and shaping the user experience,” Volkswagen said. The company highlighted the growing role of these components, noting that while the first-generation Volkswagen Golf contained around 30 semiconductors, today’s model incorporates approximately 8,000, and fully electric models like the ID.7 require about 18,000.
A central element of the plan is the joint sourcing model between Rivian and Volkswagen Group Technologies, launched in late 2024, which will coordinate semiconductor procurement for operations in both Europe and North America. Chips acquired through the partnership will be used across relevant model lines, leveraging the companies’ electronic zonal architecture.
Dirk Große-Loheide, Member of the Extended Executive Committee and Volkswagen Brand Board of Management responsible for Procurement, said: “The automotive and semiconductor sectors are becoming increasingly interconnected. By working closely together, we are building a reliable ecosystem that will drive the innovation defining the next generation of vehicles. With our strategy and new level procurement models, we are securing supply while positioning the Volkswagen Group as a driving force and trusted partner for global technology companies.”
Carsten Helbing, co-CEO of Rivian and Volkswagen Group Technologies, added: “We are combining Volkswagen Group’s global expertise with Rivian’s experience in developing SDVs, which will impact the development of future high-tech semiconductors. This model allows the joint venture’s tech teams to focus fully on development and innovation, while together we deliver tailor-made, large-scale solutions at startup speed.”
