Volkswagen Group announced its new level procurement model with Rivian and Volkswagen Group Technology, covering more than 50 semiconductor categories, at the 4th Semiconductor Summit at IAA Mobility in Munich.
These new categories include core components such as microcontrollers, power transistors, and printed circuit boards that power and connect modern vehicles. The initiative reflects the Group’s proactive approach to expand its supplier base, build resilient partnerships, and strengthen its ambition to become the Global Automotive Tech Driver.
Semiconductors are a key technology enabler for automotive innovation, powering electrification, enhancing performance and safety, and shaping the user experience. Their importance has grown dramatically: the first-generation Volkswagen Golf relied on about 30 semiconductors, while today’s model contains roughly 8,000. That number continues to rise, reaching around 18,000 in the latest fully electric models such as the ID.7. In certain applications, the focus has shifted from basic chips prioritising reliability to advanced components that enable sophisticated features, similar to those used in high-tech industries such as aerospace.
“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,” he adds.
One example of the Group’s commitment to expanding its supplier base and building value-driven partnerships is its joint sourcing initiative with Rivian Automotive for the joint venture Rivian and Volkswagen Group Technologies (JV). This model allows the two companies to share responsibility for sourcing high-tech semiconductors across more than 50 categories, helping to reduce costs, secure supply, streamline procurement and improve operational efficiency. The chips procured through this collaboration will be used across all relevant model lines of both manufacturers, based on the JV’s electronic zonal architecture in Europe and North America.
“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,” he adds.
A proactive and unified semiconductor strategy
In response to technological advancements as well as past supply challenges, the Volkswagen Group has aligned its semiconductor strategy to build a robust ecosystem. Maintaining strong, collaborative relationships with semiconductor companies and direct suppliers remains a core focus, with individual brands taking leadership roles across the different categories.
Key aspects of the approach include reducing complexity, ensuring transparent volume planning, and tracking components throughout the supply chain. These measures improve cost efficiency through direct negotiations and bundled volumes, enable faster technical and software adjustments, and enhance supply chain stability. Additionally, the Volkswagen Group is now specifically defining semiconductors for critical parts that directly affect key vehicle parameters, strengthening its own in-house capabilities.
