WASHINGTON (dpa-AFX) - Dutch semiconductor maker NXP Semiconductors N.V. (NXPI) announced on Monday that it has been selected as a strategic technology partner by Volkswagen AG (VOW3.DE) to provide microcontrollers for the automaker's future software-defined vehicle architecture.
NXP said its S32K5 family of microcontrollers would serve as a common building block for Volkswagen's zonal vehicle architecture across the group's brands and vehicle segments, with the first vehicle featuring the new architecture planned for 2027.
The company said the microcontrollers would function as core processors in zonal controllers, managing vehicle functions including lighting, body, comfort, chassis and safety systems.
Volkswagen said the technology is intended to reduce hardware complexity by consolidating functions that previously required separate chips and electronic control units.
The companies said the architecture is being developed by Rivian and Volkswagen Group Technologies, the joint venture between Volkswagen Group and Rivian, and is intended to be used across both companies' vehicles.
Volkswagen said the partnership forms part of its broader semiconductor strategy focused on direct, long-term relationships with chip suppliers to strengthen supply resilience and support future vehicle technologies.
Shares of NXP Semiconductors fell 0.56% to $233.60 in overnight trading after closing 1.21% lower on Friday.
On the XETRA, shares of Volkswagen were gaining 0.72 percent, changing hands at 69.60 euros.
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