VW and Rivian launch joint chip sourcing model at IAA
The procurement strategy announced covers microcontrollers, power transistors, and printed circuit boards. The Group says this approach will streamline procurement, reduce costs, and strengthen supply chain resilience across its future vehicle portfolio.
Volkswagen states that its semiconductor strategy prioritises resilience, transparency, and reduced complexity. This includes defining critical semiconductors, strengthening collaboration with suppliers, and improving cost efficiency through bundled volumes and direct negotiations. Measures such as transparent volume planning and enhanced component tracking are expected to ensure greater supply chain stability and faster technical integration.
A key element of this strategy is the joint sourcing model between Rivian and Volkswagen Group Technologies. The joint venture, launched in late 2024, will manage sourcing for high-tech semiconductors across more than 50 categories, covering both European and North American operations. Chips procured through this collaboration will be deployed across relevant model lines of both manufacturers, leveraging the JV’s electronic zonal architecture.
“Semiconductors are a key driver of automotive innovation, powering electrification, enhancing performance and safety, and shaping the user experience,” Volkswagen explained. The carmaker adds that growing importance of these components is evident in vehicle architecture: while the first-generation Volkswagen Golf contained around 30 semiconductors, today’s Golf integrates about 8,000. Fully electric models such as the ID.7 now require approximately 18,000.
“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,” said 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.”
“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,” said 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.”
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