Volkswagen Group hosted its fourth Semiconductor Summit during IAA Mobility in Munich, focusing on semiconductor procurement strategies and partnerships within the automotive and semiconductor sectors. The event featured industry leaders discussing the increasing role of semiconductors in modern vehicles and highlighted a new joint procurement initiative with Rivian.
A central topic at this year’s summit was Volkswagen Group’s expanded supplier strategy through a new procurement model with Rivian and Volkswagen Group Technologies. This collaboration covers over 50 semiconductor categories, including essential components such as microcontrollers, power transistors, and printed circuit boards used in vehicle production. The approach is designed to diversify the supplier base, build resilient partnerships, and support Volkswagen Group’s goal of becoming a global leader in automotive technology.
The number of semiconductors used in vehicles has grown significantly over time. While early models like the first-generation Volkswagen Golf relied on about 30 semiconductors, current models use approximately 8,000 chips. In fully electric vehicles such as the ID.7, that number rises to around 18,000.
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 between Rivian Automotive and Volkswagen Group Technologies enables both companies to share responsibility for procuring high-tech semiconductors across multiple categories. This arrangement is intended 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 has adjusted its semiconductor strategy following recent technological changes and previous supply disruptions. The company aims to maintain strong relationships with suppliers while giving individual brands leadership roles across different semiconductor categories. Key parts of this strategy include reducing complexity in sourcing processes, ensuring transparency in volume planning, tracking components throughout the supply chain for better cost management through direct negotiations and bundled volumes, enabling faster technical adjustments, enhancing stability across supply lines, and defining critical semiconductors for essential vehicle functions.
The Semiconductor Summit is an annual event hosted by Volkswagen Group to encourage cooperation among automakers, suppliers, associations, research institutions, and semiconductor companies. Held at IAA Mobility in Munich as part of a six-day program at Volkswagen’s exhibition stand under the motto “Past-Proven. Future-Driven.” this year’s summit brought together CEOs and top executives from leading organizations to discuss advancements important to mobility’s future.
