Volkswagen of Germany announced today that its joint venture with Chinese technology company Horizon Robotics, CARIZON, will develop Volkswagen's first self-developed chip for the smart driving performance of next-generation Volkswagen models in the Chinese market.
Reuters reported that Volkswagen stated that this chip will process data collected by vehicle cameras and sensors. The computing power of a single chip will reach approximately 500 to 700 TOPS (tera operations per second) and will be launched within five years.
Volkswagen Motors stated that this move will strengthen its research and development capabilities "in China, for China", but it did not explain whether this chip will be used in vehicles sold elsewhere, nor did it disclose the arrangements for chip production.
China is Volkswagen's largest market. It uses technologies independently or jointly developed by Chinese companies to enhance product competitiveness and has been trying to seize a favorable position in China to catch up with rapidly growing local competitors. Volkswagen has also expanded its cooperation with Xpeng Motors to jointly develop the electronic architecture of more models sold in China.
Volkswagen's annual sales in China have dropped from a peak of more than 4 million vehicles in 2018 to 2.75 million last year. In 2023, it will lose its position as China's best-selling car brand and be surpassed by Chinese competitor BYD.