Volkswagen Group Signs Letter of Intent for Long-Term Supply Agreement with Qualcomm: "Enhancing the Next-Generation Driving Experience"

[Financial News] Volkswagen Group announced on the 12th that on the 8th (local time) it signed a letter of intent (LOI) with Qualcomm Technologies for a long-term supply agreement to provide advanced infotainment and connectivity functions based on the Snapdragon Digital Chassis solutions.
Under this agreement, Qualcomm will serve as a key technology partner for the launch of Volkswagen Group’s zonal Software-Defined Vehicle (SDV) architecture. This architecture is being developed for major global markets such as North America and Europe through Rivian-Volkswagen Group Technologies, a joint venture with Rivian, and Qualcomm is expected to supply high-performance System-on-Chip (SoC) solutions for infotainment functions starting in 2027.
Cooperation with Qualcomm has now expanded to CARIAD, Volkswagen Group’s software subsidiary, and the group’s Autonomous Driving Alliance (ADA), which is led by CARIAD and Bosch. Volkswagen Group expects that this letter of intent will strengthen its capabilities in integrating semiconductor and artificial intelligence (AI) technologies and help secure future-oriented mobility solutions across its entire vehicle portfolio.
Volkswagen Group plans to apply the SDV architecture to the new ID.everyone model and to all future electric vehicle models based on the SSP (Scalable Systems Platform) electric vehicle platform. Through this, the Group aims to introduce technologically advanced, cutting-edge products across a wide range of segments, price points, and global markets.
Vehicles equipped with the Snapdragon Cockpit Platform will offer an agent-like, AI-based experience that anticipates driver needs, responds in real time, and provides proactive assistance. This spans a wide array of functions, from personalized climate control and seat adjustment to optimized route guidance and multimodal control that recognizes a combination of voice and gestures.
CARIAD and the Autonomous Driving Alliance (ADA), led by CARIAD and Bosch and working in collaboration with Volkswagen Group and Qualcomm Technologies, plan to use Qualcomm’s top-tier automotive computing platform, Snapdragon Ride Elite, to further advance the development of autonomous driving technologies.
The supply agreement is currently being driven primarily by Audi and the Volkswagen Passenger Cars brand, with the goal of expanding its application across the entire Group. As part of the agreement, brands within the Group plan to integrate the Snapdragon 5G Modem-RF System and Vehicle-to-Everything (V2X) technologies into their next-generation SDV vehicles.
Carsten Schnake, member of the Board of Management responsible for Procurement at the Volkswagen Passenger Cars brand and member of the Volkswagen Group Extended Executive Committee, said, “Next-generation infotainment solutions and advanced driver assistance systems are emerging as key elements of product differentiation. By welcoming Qualcomm Technologies as a partner for the future, we have secured the long-term supply of semiconductors that are essential for realizing these technologies.”
Nakul Duggal, Executive Vice President of Qualcomm Technologies and General Manager of the Automotive, Industrial & Embedded IoT and Robotics business, said, “Snapdragon Digital Chassis serves as a core foundation for software-defined architectures, enabling next-generation infotainment and advanced driver assistance systems with safety, performance, and scalability. Together with Volkswagen Group, Qualcomm will deliver innovative in-vehicle experiences while providing the robust technological foundation needed to lead the era of intelligent mobility.”

eastcold@fnnews.com Kim Dong-chan Reporter