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    Home > Finance > Volkswagen to develop chip for China smart cars with Horizon Robotics
    Finance

    Volkswagen to develop chip for China smart cars with Horizon Robotics

    Published by Global Banking & Finance Review®

    Posted on November 5, 2025

    1 min read

    Last updated: January 21, 2026

    Volkswagen to develop chip for China smart cars with Horizon Robotics - Finance news and analysis from Global Banking & Finance Review
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    Tags:innovationtechnologyAutomotive industrypartnershipresearch

    Quick Summary

    Volkswagen teams up with Horizon Robotics to develop a smart car chip for enhanced driving in China, aiming for 500-700 TOPS computing power.

    Table of Contents

    • Volkswagen's Chip Development Initiative
    • Technical Specifications of the Chip
    • Strategic Importance for China
    • Future Implications for Global Markets

    Volkswagen Partners with Horizon Robotics to Create Smart Car Chip

    Volkswagen's Chip Development Initiative

    SHANGHAI (Reuters) -Volkswagen said on Wednesday that CARIZON, its joint venture with China's Horizon Robotics, will develop the German carmaker's first in-house chip to power smart driving capabilities in its next generation of cars for China.

    Technical Specifications of the Chip

    The chip will be used for processing data from cameras and sensors in a car with a single-chip computing power of around 500 to 700 tera operations per second (TOPS), Volkswagen said in a statement. It expected to deliver the product within the next three to five years, it added.

    Strategic Importance for China

    Volkswagen said the move would deepen its research and development capability "in China, for China," without elaborating if the chip will be used in cars to be sold outside the world's top auto market. It also did not say how it will arrange the production of the chip.

    Future Implications for Global Markets

    (Reporting by Zhang Yan and Brenda Goh; Editing by Muralikumar Anantharaman)

    Key Takeaways

    • •Volkswagen partners with Horizon Robotics for chip development.
    • •The chip will enhance smart driving capabilities in China.
    • •Targeted for use in Volkswagen's next-generation cars.
    • •The chip offers 500-700 TOPS computing power.
    • •Focus on research and development 'in China, for China'.

    Frequently Asked Questions about Volkswagen to develop chip for China smart cars with Horizon Robotics

    1What is a joint venture?

    A joint venture is a business arrangement where two or more parties agree to pool their resources for a specific task, sharing profits, losses, and control of the enterprise.

    2What are smart cars?

    Smart cars are vehicles equipped with advanced technology that enhances their performance, safety, and connectivity, often featuring automated driving capabilities and integration with digital services.

    3What is chip technology?

    Chip technology refers to the use of microchips in electronic devices, enabling them to perform complex functions, process data, and communicate with other devices.

    4What is automotive innovation?

    Automotive innovation involves the development of new technologies and processes in the automotive industry, aimed at improving vehicle performance, safety, and environmental impact.

    5What is data processing in vehicles?

    Data processing in vehicles involves the collection and analysis of data from various sensors and cameras to enhance driving capabilities, safety features, and overall vehicle performance.

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