Volkswagen ( OTCPK:VLKAF ) and chipmaker STMicroelectronics N.V. ( STM ) plan on developing a new semiconductor chip for software-defined vehicles.
Volkswagen software unit Cariad and STMicroelectronics ( STM ) will co-design the new chip amid a global shortage that has cut into auto production plans. The new chip will be part of the Stellar microcontroller family of semiconductors and will be manufactured by Taiwan Semiconductor Manufacturing Company ( TSM ).
The planned cooperation targets the new generation of Volkswagen ( OTCPK:VLKAF ) vehicles that will be based on the unified and scalable software platform.
Volkswagen statement: "We are about to launch a groundbreaking new cooperation model for the Volkswagen Group. With the planned direct cooperation with ST and TSMC, we are actively shaping our entire semiconductor supply chain. We’re ensuring the production of the exact chips we need for our cars and securing the supply of critical microchips for years to come."
Shares of Volkswagen fell 1.60% in Frankfurt trading on Wednesday, while STMicroelectronics N.V. ( STM ) showed a 1.05% decline in premarket action in the U.S.
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Volkswagen looks to secure chip supply through new development deal with STMicroelectronics