Volkswagen Group and Qualcomm Sign Letter of Intent to Power Next Generation Driving Experiences

Volkswagen Group (XETRA: VOW3) and Qualcomm Technologies, Inc. announced a Letter of Intent (LOI) for a long-term supply agreement to deliver advanced infotainment and connectivity capabilities powered by Snapdragon^® Digital Chassis^™ solutions. Under this intended agreement, Qualcomm Technologies would serve as Volkswagen Group’s primary tech provider for the launch of its zonal SDV architecture – developed for the Western hemisphere through Volkswagen Group’s joint venture with Rivian Automotive, Inc. – Rivian and Volkswagen Group Technologies (RV Tech) – providing high-performance system-on-chips (SoCs) for infotainment capabilities starting in 2027. A current collaboration with Qualcomm Technologies already extends to the Group’s Automated Driving Alliance (ADA), formed by CARIAD and Bosch, to accelerate highly automated driving development. This intended agreement reinforces Volkswagen’s strategy to consolidate procurement of key components and expand expertise in integrating semiconductors and AI technologies, ensuring scalable, future-ready mobility solutions across its vehicle portfolio.

Karsten Schnake, Member of the Board of Management for Procurement at the Volkswagen Passenger Cars brand and Member of the Extended Volkswagen Group Executive Committee, said: “Next-Gen infotainment solutions and driver assistance systems are becoming increasingly important for differentiating our products and now account for a significantly higher share of vehicle value. With Qualcomm Technologies as one partner for the future, we are securing long-term access to the semiconductors that are essential for these technologies. Qualcomm Technologies is among the leading global suppliers of automotive semiconductors. Together, we are continuing a trusted collaboration to deliver a greater efficiency, stability, and predictability in our supply chain – while strengthening our capabilities in developing key technology fields.”

Werner Tietz, Member of the Board of Management for Research and Development at SEAT S.A. and Head of Volkswagen Group Research and Development, said: “High-performance semiconductors are the foundation for the next generation of connected vehicles. They enable us to seamlessly align software and hardware. With access to these advanced chips, we aim to accelerate the development of powerful and scalable technologies to deliver a digital driving experience that continuously evolves for our customers at competitive costs.”

Nakul Duggal, EVP and Group GM, Automotive, Industrial and Embedded IoT and Robotics, Qualcomm Technologies, Inc. said: “We are proud to deepen our longstanding collaboration with Volkswagen Group and serve as a trusted partner for its future vehicle platforms. The Snapdragon Digital Chassis provides the foundation for software -defined architectures, enabling next- generation infotainment and advanced driver assistance systems that emphasize safety, performance, and scalability. Together with Volkswagen, we are delivering transformative in-vehicle experiences for millions of drivers and passengers worldwide while providing the technology backbone needed to lead in the era of intelligent mobility.”

Enrico Salvatori, SVP and President, Qualcomm Europe, Qualcomm Europe, Inc., said: “Volkswagen Group is advancing toward a fully software-defined future, and we are proud that Snapdragon Digital Chassis will serve as a core enabler of that transformation. This collaboration builds on the trust and momentum we’ve established over many years and reinforces Qualcomm Technologies’ commitment to delivering the high-performance compute, connectivity, and AI capabilities modern vehicle architectures demand. Together, we are advancing a modern vehicle architecture that is software-defined, AI-ready, and globally scalable – supporting updatable infotainment and accelerating the development of highly automated driving.”

Important technological foundation for SDV architecture and highly automated driving functions

Volkswagen Group’s joint venture with Rivian Automotive, Rivian and Volkswagen Group Technologies (RV Tech), aims to leverage the Snapdragon^® Cockpit Platform for immersive digital experiences based on the zonal SDV architecture.

In the SDV architecture, high-performance modular central computers manage all vehicle functions. Customers can benefit from advanced infotainment and highly automated driving functions, updated and expanded over-the-air – keeping vehicles current and enhancing the driving experience. Volkswagen Group will integrate the SDV architecture in the Western hemisphere into the ID.EVERY1 and all future electric vehicles built on the Scalable Systems Platform (SSP). The Group aims to offer technologically state-of-the-art products across different segments, price classes, and international markets.

Vehicles that utilize the Snapdragon Cockpit Platform can help deliver agentic AI-driven experiences that anticipate needs, adapt in real time, and provide proactive assistance – from personalized climate and seating adjustments to optimized routes and multimodal voice or gesture controls.

Working with Volkswagen Group and Qualcomm Technologies, the Automated Driving Alliance (ADA), formed by CARIAD and Bosch, aims to leverage Snapdragon Ride^™ Elite – Qualcomm Technologies’ most powerful automotive compute platform – to advance the development of automated driving. The goal: an AI-based system for highly automated driving, scalable across brands and model lines, and fully compatible with the SDV. Powered by an end-to-end AI architecture, Snapdragon Ride Elite delivers ultra-low latency for sensor processing and real-time decision-making.

The intended supply agreement is currently being actively driven forward by AUDI AG and Volkswagen Passenger Cars, with the goal of achieving a Group-wide impact. As part of the intended agreement, the Group brands also intend to integrate Snapdragon^® 5G Modem RF and V2X technology into next-generation SDV-based vehicles, enabling ultra-fast connectivity and real-time communication for safer, smarter, and more connected driving. The companies will also explore new development opportunities in automotive innovation, including AI-driven technologies that could enhance safety, personalization, and intelligent mobility.

About the Volkswagen Group

The Volkswagen Group is one of the world’s leading car makers, headquartered in Wolfsburg, Germany. It operates globally, with 115 production facilities in 17 European countries and 10 countries in the Americas, Asia and Africa. With around 680,000 employees worldwide. The Group’s vehicles are sold in over 150 countries.

With a comprehensive portfolio of strong global brands, leading technologies at scale, innovative ideas to tap into future profit pools and an entrepreneurial leadership team, the Volkswagen Group is committed to shaping the future of mobility through investments in electric and autonomous driving vehicles, digitalization and sustainability. The goal: As a “Global Automotive Tech Driver”, to make the best automotive technologies accessible to customers worldwide – from entry-level mobility to the luxury segment.

In 2024, the total number of vehicles delivered to customers by the Group globally was 9.0 million (2023: 9.2 million). Group sales revenue in 2024 totaled EUR 324.7 billion (2023: EUR 322.3 billion). The operating result in 2024 amounted to EUR 19.1 billion (2023: EUR 22.5 billion).

About Qualcomm

Qualcomm relentlessly innovates to deliver intelligent computing everywhere, helping the world tackle some of its most important challenges. Building on our 40 years of technology leadership in creating era-defining breakthroughs, we deliver a broad portfolio of solutions built with our leading-edge AI, high-performance, low-power computing, and unrivaled connectivity. Our Snapdragon^® platforms power extraordinary consumer experiences, and our Qualcomm Dragonwing™ products empower businesses and industries to scale to new heights. Together with our ecosystem partners, we enable next-generation digital transformation to enrich lives, improve businesses, and advance societies. At Qualcomm, we are engineering human progress. 

Qualcomm Incorporated includes our licensing business, QTL, and the vast majority of our patent portfolio. Qualcomm Technologies, Inc., a subsidiary of Qualcomm Incorporated, operates, along with its subsidiaries, substantially all of our engineering and research and development functions and substantially all of our products and services businesses, including our QCT semiconductor business. Snapdragon and Qualcomm branded products are products of Qualcomm Technologies, Inc. and/or its subsidiaries. Qualcomm patents are licensed by Qualcomm Incorporated.