Volkswagen Group convened industry leaders at the 4th Semiconductor Summit during IAA Mobility in Munich to discuss its approach to semiconductor procurement and highlight its partnership with Rivian. The event focused on how semiconductors are increasingly central to automotive innovation, supporting vehicle electrification, safety, performance, and user experience.
A key announcement from the summit was Volkswagen Group’s new procurement model developed in collaboration with Rivian and Volkswagen Group Technologies. This initiative covers more than 50 categories of semiconductors, including microcontrollers, power transistors, and printed circuit boards. These components are essential for powering and connecting modern vehicles. The company aims to expand its supplier base and build resilient partnerships through this joint sourcing strategy.
The importance of semiconductors in cars has grown significantly over time. For example, while the first-generation Volkswagen Golf used about 30 semiconductors, current models contain roughly 8,000 chips. In fully electric vehicles like the ID.7, that number rises to around 18,000. Advanced chips now enable sophisticated features similar to those found in industries such as aerospace.
Dirk Große-Loheide, Member of the Extended Executive Committee and Member of the 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.” He added: “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.”
The joint sourcing initiative with Rivian Automotive for their joint venture allows both companies to share responsibility for acquiring high-tech semiconductors across multiple categories. This approach is designed to reduce costs, secure supply chains, streamline procurement processes, and improve operational efficiency for both manufacturers using electronic zonal architecture in Europe and North America.
Carsten Helbing, co-CEO of Rivian and Volkswagen Group Technologies stated: “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.” He continued: “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.”
Volkswagen Group’s updated semiconductor strategy responds not only to technological progress but also past supply challenges by aiming for a robust ecosystem through strong relationships with suppliers. The group’s brands take leadership roles across different categories while focusing on reducing complexity in sourcing processes.
Other aspects include transparent volume planning and component tracking throughout the supply chain. These steps help improve cost efficiency via direct negotiations and bundled volumes while enabling faster technical adjustments when needed. The company is also defining specific semiconductors for critical parts that affect key vehicle parameters.
The Semiconductor Summit is an annual event hosted by Volkswagen Group that serves as a platform for aligning industry visions and fostering cooperation among stakeholders from leading semiconductor firms, automotive suppliers, associations, research institutions, as well as representatives from within Volkswagen itself.