VW and Rivian launch joint chip sourcing model at IAA – electrive.com

At the 4th Semiconductor Summit during IAA Mobility, Volkswagen Group detailed a comprehensive semiconductor procurement strategy and highlighted a new collaboration with Rivian and Volkswagen Group Technologies. The initiative introduces a joint sourcing model that spans more than 50 semiconductor categories, designed to support both European and North American operations.

The plan covers key components such as microcontrollers, power transistors, and printed circuit boards. By consolidating demand and standardizing sourcing across brands and regions, Volkswagen expects to streamline purchasing, reduce costs, and bolster supply chain resilience for upcoming vehicle platforms.

Three pillars: resilience, transparency, simplicity

• Resilience: Define and prioritize critical semiconductors to ensure reliable supply and mitigate shortages.
• Transparency: Improve volume planning and enable enhanced component tracking for better predictability and faster integration.
• Reduced complexity: Bundle volumes and conduct direct negotiations to drive cost efficiency and scale.

Volkswagen says the measures will stabilize the supply chain and accelerate technical rollouts, especially as vehicles become more software-defined and electronics-heavy.

Joint sourcing with Rivian

A central element is the joint sourcing model between Rivian and Volkswagen Group Technologies, launched in late 2024. The collaboration manages procurement for high-tech chips across more than 50 categories, with deployments planned across relevant model lines of both manufacturers. The effort is aligned with the joint venture’s electronic zonal architecture, supporting scalable, software-defined vehicle (SDV) designs.

Why semiconductors matter more than ever

Semiconductors underpin modern vehicle innovation—from electrification and performance to safety systems and user experience. The growth in chip content illustrates this trajectory: the first-generation Volkswagen Golf used roughly 30 semiconductors, today’s Golf integrates about 8,000, and fully electric models like the ID.7 require around 18,000. As electronics content rises, securing supply, quality, and cost-effective access to advanced chips becomes a strategic imperative.

What leadership says

Volkswagen executives emphasize that closer cooperation between the automotive and semiconductor industries is essential to enable next-generation vehicles. They note that the new procurement model strengthens supply security while positioning the Group as a reliable partner for global technology companies. Rivian and Volkswagen Group Technologies add that combining Volkswagen’s global scale with Rivian’s SDV expertise will help shape future high-tech semiconductors, allowing engineering teams to focus on development and innovation while delivering tailored, large-scale solutions at high speed.

What to expect next

With clearer demand signals, tighter supplier collaboration, and unified sourcing across brands and regions, the companies aim to improve cost competitiveness, accelerate integration of new components, and reduce risk from future supply shocks. For customers, this should translate into faster deployment of advanced features and architectures across upcoming model lines.