Qualcomm to Supply Volkswagen with Chips for Automated Driving

German based car manufacturer Volkwagen Group (ETR: VOW3) has entered into a partnership with United States computer chip manufacturer Qualcomm Inc. (QCOM) to develop automated driving technology with the contract set to run until 2031.

According to the German daily Handelsblatt which was the first to report the news, Volkswagen will be using Qualcomm’s system-on-a-chip (SoC) developed solely for automated driving across all brands worldwide starting in 2026. The newspaper however failed to reveal the source of this information.

Mid last-month, the chief executive officer of the German car maker, Herbert Diess travelled to Qualcomm’s headquarters in San Diego where terms and conditions of the partnership deal were agreed upon.

According to the sources Handelsblatt, the deal will cost Volkswagen around 1 billion euros.

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