Volkswagen Bets on In-house SoCs with $200M Push into Autonomous Driving

The first model equipped with Volkswagen’s in-house SoC is expected to enter mass production within the next 3–5 years.

Volkswagen Group (China) said on Nov. 5 at the China International Import Expo that CARIZON — a joint venture between its software arm CARIAD and Chinese autonomous-driving chipmaker Horizon Robotics — will independently design and develop system-on-chip (SoC) semiconductors in China.

The SoCs are expected to enter mass production in the next three to five years. Each chip will reportedly deliver 500–700 TOPS of computing power and will first be deployed in models supporting Level-3 and above autonomous driving to power advanced driver-assistance and automated-driving functions.

CARIAD China CEO Sam Chen said the project involves an estimated investment of about $200 million, leveraging Horizon Robotics’ local expertise to accelerate commercialization.

CARIZON plans to unveil its first advanced driver-assistance solution in 2025, marking the completion of Volkswagen’s initial phase of intelligent-driving development in China before scaling up deployments.

Company insiders said building in-house SoCs will help establish a vertically integrated stack — from algorithms to hardware — reduce dependence on external suppliers, and improve cost and efficiency control.

In October, CARIAD China disclosed that the CEA electronic and electrical architecture for next-generation models has reached pre-delivery status and is expected to enter mass production in 2025.

Starting in 2026, models built on the CEA platform and equipped with CARIZON’s intelligent-driving solutions will be rolled out.

By 2027, Volkswagen aims to introduce more than 20 electrified models, and about 30 battery-electric models by 2030.

The initiative aligns with Volkswagen’s ongoing restructuring in China. The automaker has intensified investment in smart-vehicle technology over the past two years, including establishing Volkswagen China Technology Co. (VCTC), its largest R&D site outside Germany, enabling product development cycles to shorten by over 30%.

Back in 2020, Volkswagen announced an investment plan exceeding RMB 100 billion ($14 billion), aiming to deepen integration into China’s intelligent EV ecosystem.

Notably, the Porsche China R&D Center was also inaugurated on the same day in Shanghai’s Jiading district to focus on infotainment and driver-assistance solutions tailored to China.

As global competition in intelligent EVs intensifies and supply-chain control becomes increasingly strategic, Volkswagen’s in-China SoC plan underscores the deepening of its “in China, for China” strategy.

Volkswagen Group CEO Oliver Blume said in-house SoC development is key to mastering core technologies for future smart mobility, with China playing a pivotal role.