Volkswagen Group and Rivian Unveil Joint Semiconductor Procurement Model to Strengthen Automotive Supply Chains

At the 4th Semiconductor Summit during IAA Mobility in Munich, Volkswagen Group announced a sweeping new semiconductor procurement strategy. This initiative, developed in partnership with Rivian and Volkswagen Group Technologies, introduces a joint sourcing model covering more than 50 semiconductor categories. The goal: streamline procurement, cut costs, and fortify supply chain resilience for the next generation of vehicles.

Volkswagen-Rivian Joint Sourcing: A Strategic Shift for Automotive Semiconductors

Volkswagen’s new approach is built around direct negotiations with semiconductor manufacturers, long-term supply agreements, and increased investment in R&D partnerships. The Volkwagen-Rivian joint venture—launched in late 2024—will manage sourcing for high-tech semiconductors, including microcontrollers, power transistors, and printed circuit boards, across both European and North American operations. This unified procurement effort aims to reduce complexity and ensure a reliable flow of critical components for both Volkswagen and Rivian model lines, leveraging a shared electronic zonal architecture.

Dirk Große-Loheide, Member of the Extended Executive Committee and the Volkswagen Brand Board of Management responsible for Procurement, emphasized the sector’s transformation:

“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.”

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Why Semiconductors Matter More Than Ever

Semiconductors are at the core of modern automotive innovation. They power everything from electrification and advanced safety systems to user experience. The scale of this transformation is striking: where the original Volkswagen Golf used about 30 semiconductors, today’s Golf integrates around 8,000. Fully electric models like the ID.7 require nearly 18,000 semiconductors, reflecting the growing complexity and technical sophistication of new vehicles .

This rising demand, coupled with global supply chain shocks in recent years, prompted Volkswagen to rethink its procurement model. The company now prioritizes transparency, bundled volumes, and robust partnerships with suppliers—direct responses to past shortages and disruptions .

Collaboration with Rivian: Innovation at Startup Speed

Carsten Helbing, co-CEO of Rivian and Volkswagen Group Technologies, described the collaboration as a fusion of Volkswagen’s global scale and Rivian’s expertise in software-defined vehicles (SDVs):

“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.”

The Volkswagen-Rivian joint venture, headquartered in Silicon Valley, already employs more than 1,000 engineers and is expanding in both Europe and the U.S. The first tangible result will be seen in 2026, when the compact Rivian R2—developed with joint technologies—debuts. Volkswagen plans to integrate these advances across its own brands, including VW, Audi, and possibly Porsche (Messe Frankfurt).

Industry Impact and Outlook

This move is widely regarded by industry insiders as a significant step in aligning the automotive and semiconductor sectors. By jointly defining critical chip categories, investing in R&D, and securing long-term supply, Volkswagen and Rivian aim to insulate themselves from future disruptions and accelerate the development of advanced vehicle technologies.

While public social media reaction remains limited at this stage, the initiative has drawn positive commentary from both companies’ leadership at the summit. As the automotive industry faces ever-rising demand for cutting-edge chips, this model could set a new standard for cross-sector collaboration.

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