In its journey towards spinning off as the independent company Aumovio, the Continental group sector Automotive has taken a strategic step to increase resilience and ensure future success with the establishment of an Advanced Electronics & Semiconductor Solutions (AESS) organisation. This new organisation has been established to design and verify automotive semiconductors with a view of fulfilling internal demand. As a strategic move, GlobalFoundries (GF) has been onboarded as the manufacturing partner for this organisation.
The Automotive industry’s demand for semiconductors to enhance electronic content for Software-defined Vehicles is increasing. The global automotive semiconductor market is estimated to reach about €110bn by 2032, and therefore, it is imperative for organisations to invest in semiconductor development to be successful in the long run.
“Continental is committed to sustainable growth and the Automotive group sector is on the right path to success. To ensure future success of the group sector, we have decided to develop semiconductors internally. The creation of this fabless semiconductor organisation will strengthen Continental’s position not only by reducing geopolitical risks but also by the way of becoming more self-reliant in this field,” said Philipp von Hirschheydt, member of the Continental Executive Board and CEO of the future Aumovio.
AESS will design and verify semiconductors internally while the production line will be established with GF to exclusively manufacture these semiconductors for the organisation. GF is a leading manufacturer of essential semiconductors that the world relies on to live, work and connect. With a global manufacturing footprint across the US, Europe and Asia, GlobalFoundries delivers power-efficient, high-performance solutions for several industries including Automotive, Internet of Things, communications infrastructure, smart mobile and other high-growth markets.
“GF is proud to support Continental and the launch of their AESS organisation as we partner together to deliver advanced semiconductor solutions to meet the growing demand for software-defined vehicles,” said Niels Anderskouv, president and chief operating officer at GF. “Our silicon-proven portfolio of automotive-qualified process technologies, supported by our resilient global footprint and track record of manufacturing excellence, will enable Continental to deliver innovative solutions for the next generation of safe, connected and autonomous vehicles. We are excited to see the Automotive semiconductor supply chain continue to evolve and want to congratulate the Continental team on shaping that evolution with the establishment of this organisation.”
“In the evolving automotive landscape, it is imperative for organisations to invest in technology, particularly in essential areas like semiconductors. The formation of this new entity, in collaboration with a dependable manufacturing partner such as GlobalFoundries, will empower us to develop innovative products and solutions successfully,” said Nino Romano, CTO Continental Automotive.
The establishment of this organisation aligns with the Automotive Board’s long-term strategy to invest in technology and increase self-sufficiency. This initiative seeks to improve Automotive’s market presence and autonomy by building the capability to design and manage semiconductor production in partnership with leading semiconductor manufacturers.
The new organisation supports the Automotive group sector in various ways. This initiative aims to establish a resilient supply chain, improve product quality, and reduce time to market. The organisation has the potential to create value by generating savings and efficiencies. Additionally, it is expected to enhance the company’s cash flow through anticipated savings.
As part of the Operations and Technology organisation, the AESS organisation will help to strengthen Automotive’s position as an automobile component manufacturer. With a strong organisational structure and a streamlined setup, AESS is creating new internal development opportunities and laying the foundation for future growth in a dynamic market environment.
SOURCE: Continental
