VW to Develop Own Chip for Advanced Driving Assist in China Push

Volkswagen AG plans to develop its own advanced semiconductor chip to power advanced driver assistance systems as automakers seek more more control over their technology supply chains, which have been roiled by geopolitical tensions.

The chips will be developed in China, where VW and other global carmakers have fallen behind local manufacturers like BYD Co. and Xiaomi Corp. and their tech-laden vehicles. The so-called System-on-Chip will be capable of powering Level 3 driver assistance, where a car can control itself under limited circumstances.

“By designing and developing the System-on-Chip here in China, we are taking control of a key ...