The Volkswagen Group and U.S. chip developer Qualcomm have entered into a comprehensive partnership that is set to significantly shape the technological foundation of the group’s future electric vehicles. The agreement was announced on the sidelines of the CES technology trade show in Las Vegas after final legal details had been resolved in recent weeks. The aim of the cooperation is to consolidate the development and deployment of central semiconductor solutions for nearly all of Volkswagen’s electric models in Western markets.
Starting in 2027, Qualcomm will serve as the primary supplier of so-called system-on-chips for the group’s new electric models. These chips form the basis for high-performance infotainment, connectivity, and driver-assistance functions. The Snapdragon platform developed by the U.S. company will be used—until now best known from the smartphone sector, but increasingly adapted for automotive applications. The first model to be equipped with the new generation of chips is expected to be the high-volume ID.Everyone.
The software built on these chips will be developed in Volkswagen’s joint venture with U.S. electric vehicle manufacturer Rivian. All future electric vehicles of the group’s brands in the Western Hemisphere that are based on the new SSP platform are to use this technical architecture. The SSP is designed as a fully electric, modular vehicle platform and is intended to replace a wide range of existing architectures over the long term. A possible use of Qualcomm technology in vehicles with combustion engines is being examined.
The new chip and software architecture is intended to result in vehicles that rely more heavily on artificial intelligence and are significantly better connected. Planned features include more natural voice control, personalized vehicle functions, and improved assistance and automation capabilities. Software updates are also expected to become simpler and faster through the use of central high-performance computers, as numerous individual control units will no longer be required.
Financial details of the partnership were not disclosed. According to sources within the group, no revenue-sharing model is planned under which Qualcomm would participate in the revenue from each vehicle sold. Instead, the collaboration is described as technologically and economically balanced. Qualcomm sees the partnership as an important step toward expanding its presence in the automotive sector and reducing its dependence on the weakening smartphone market.
For Volkswagen, the decision also means that proprietary chip developments from partner Rivian will not be used for the time being. The cooperation with Qualcomm is intended to help the group catch up in software and electronics and to lay the foundation for future vehicles that are more strongly defined by software.
