Home / Business and Economy / VW ditches Nvidia for China's chip tech
VW ditches Nvidia for China's chip tech
17 Mar
Summary
- Volkswagen is shifting away from Nvidia chips.
- Partnerships with Chinese firms like Xpeng and Horizon Robotics.
- New ID. UNYX 08 SUV debuts with L2 driver assist.
Volkswagen Group China is strategically pivoting from relying on Nvidia, opting instead for advanced technology developed by local Chinese companies. Thomas Ulbrich, chief technology officer for Volkswagen Group China, stated that there is "no reason to stick [to] Nvidia" due to the capabilities of Chinese firms.
The German automaker has established a joint venture with Horizon Robotics for semiconductors and partnered with Xpeng, an electric vehicle company that has developed its proprietary "Turing" car chip. This collaboration is crucial for Volkswagen's ambition to integrate more intelligence into its vehicles, a key factor for consumers of smart EVs.
Volkswagen's first all-electric SUV, the ID. UNYX 08, manufactured in Hefei and set for release by the end of June, incorporates the Xpeng Turing chip. This vehicle offers L2 advanced driver-assist features, a technology Xpeng has already successfully deployed in China.
Furthermore, Volkswagen's joint venture with Horizon, named Carizon, is developing its own advanced automotive chip, anticipated to be ready in three to five years. Ulbrich also foresees Volkswagen cars in China achieving L3 capabilities within approximately two years, which would allow for hands-free driving under specific conditions, shifting accident liability to the manufacturer.
While Nvidia has also targeted the automotive chip market, growth in this sector has slowed, with Chinese EV manufacturers increasingly opting for in-house chip development. Ulbrich noted that AI integration is progressing faster in manufacturing facilities than in vehicles, with Volkswagen already implementing AI-powered functions on its factory floors.
