Continental's Automotive division has unveiled a new internal unit focused on advanced electronics and semiconductor solutions (AESS), designed to strengthen its long-term autonomy and manufacturing control. This strategic initiative aligns with the sector's ongoing spin-off into a standalone company, Aumovio.
The new fabless semiconductor organisation will design and verify application-specific integrated circuits (ASICs) tailored to Continental's automotive requirements. GlobalFoundries (GF), a global semiconductor foundry, has been appointed as the exclusive manufacturing partner.
The automotive industry faces rising demand for high-performance electronics, particularly as vehicles transition to software-defined architectures. With market estimates placing global automotive semiconductor value at €110 billion by 2032, Continental's move reflects a broader trend towards supply chain resilience and technological independence.
According to Philipp von Hirschheydt, Continental Executive Board member and CEO-designate of Aumovio, the new setup is intended to mitigate geopolitical risk while ensuring reliable semiconductor access for future vehicle platforms.
Continental's choice of GlobalFoundries as its production partner brings established capabilities in automotive-grade semiconductor manufacturing. With a multinational fabrication footprint and automotive-qualified technologies, GF is positioned to meet the quality and volume requirements of Continental's roadmap.
The AESS division will operate under the Automotive Operations and Technology umbrella, aiming to streamline semiconductor design processes, shorten time-to-market, and improve component integration. The company also expects cost savings and cash flow benefits from the initiative.
Continental's internal semiconductor push mirrors a broader trend among tier-one suppliers seeking greater control over critical components in EV and connected vehicle platforms. As software-defined architectures become central to automotive design, chip strategy is emerging as a key differentiator. This development supports the industry's pivot toward smarter, more resilient vehicle ecosystems.
Tagged with: semiconductors, Continental Automotive, software-defined vehicles, EV electronics, GlobalFoundries, automotive supply chain, fabless chip design
Disclaimer: This content may include forward-looking statements. Views expressed are not verified or endorsed by Tyre News Media.
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