Volkswagen announces €2.4bn venture with Chinese auto chip producer
Volkswagen made a giant leap in the autonomous driving market by announcing a venture with the Chinese computer chip and robotics company Horizon Robotics.
Volkswagen's software company Cariad will hold a 60% stake in the joint venture with Horizon. The transaction is expected to be completed in 2023 and displays the German automaker's will to gain influence in the global chip market amid shortages and improve its software chips.
Under the partnership, Volkswagen and Horizon will work on a chip to integrate numerous functions for autonomous driving. The technology will only be able in China and help Volkswagen to strengthen its presence in the Chinese market.
The venture is not the first collaboration in Volkswagen's autonomous driving ambitions. In January, Volkswagen announced a deal with Bosch to develop self-driving software, following a partnership with American chip producer Qualcomm in May. One month later, the German giant signed an agreement to develop a new semiconductor with Franco-Italian chipmaker STMicroelectronics.