Semiconductors are a key driver of automotive innovation, powering electrification, enhancing performance and safety, and shaping the user experience. Their importance has grown dramatically: the first-generation Volkswagen Golf relied on about 30 semiconductors, while today’s model contains roughly 8,000. That number continues to rise, reaching around 18,000 in the latest fully electric models such as the ID.7. In certain applications, the focus has shifted from basic chips prioritizing reliability to advanced components that enable sophisticated features, similar to those used in high-tech industries such as aerospace.
“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,” says Dirk Große-Loheide, Member of the Extended Executive Committee and Member of the Volkswagen Brand Board of Management responsible for Procurement. “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,” he adds.
New Level Procurement Model: Joint Sourcing with Rivian and Volkswagen Group Technologies
One example of the Group’s commitment to expanding its supplier base and building value-driven partnerships is its joint sourcing initiative with Rivian Automotive for the joint venture Rivian and Volkswagen Group Technologies (JV). This model enables the two companies to share responsibility for sourcing high-tech semiconductors across more than 50 categories, helping to reduce costs, secure supply, streamline procurement and improve operational efficiency. The chips procured through this collaboration will be used across all relevant model lines of both manufacturers, based on the JV’s electronic zonal architecture in Europe and North America.
“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,” says Carsten Helbing, co-CEO of Rivian and Volkswagen Group Technologies. “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,” he adds.
A Proactive and Unified Semiconductor Strategy
In response to technological advancements as well as past supply challenges, the Volkswagen Group has aligned its semiconductor strategy to build a robust ecosystem. Maintaining strong, collaborative relationships with semiconductor companies and direct suppliers remains a key focus, with individual brands taking leadership roles across the different categories.
Key aspects of the approach include reducing complexity, ensuring transparent volume planning, and tracking components throughout the supply chain. These measures improve cost efficiency through direct negotiations and bundled volumes, enable faster technical and software adjustments, and enhance supply chain stability. Furthermore, the Volkswagen Group is now specifically defining semiconductors for critical parts that directly affect key vehicle parameters, strengthening its own in-house capabilities.
About the Semiconductor Summit 2025
The annual event, hosted by the Volkswagen Group and its brands for the fourth time, serves as a strategic platform to align industry visions, foster cooperation, and advance innovations critical to the future of mobility. This year, as part of the Volkswagen Group’s comprehensive six-day program at IAA Mobility in Munich, participants gathered directly at the Group’s exhibition stand. The Summit, under the motto “Past-Proven. Future-Driven.” brought together CEOs and top executives from leading semiconductor companies, key automotive suppliers, Volkswagen Group representatives, and representatives from associations and research institutions.
