Key Takeaways

• The Advanced Electronics & Semiconductor Solutions (AESS) unit will focus on the development of semiconductor circuits.
• GlobalFoundries has been chosen as the manufacturing partner, enhancing Continental’s self-reliance in semiconductor production.
• The global automotive semiconductor market is projected to reach approximately 110 billion Euros by 2032, driven by the demand for advanced vehicle technology.

Continental Establishes AESS to Enhance Semiconductor Capabilities

Continental is launching the Advanced Electronics & Semiconductor Solutions (AESS) unit, which will develop and manufacture application-specific semiconductor circuits. This strategic initiative aims to meet the growing demand for semiconductors in the automotive sector, particularly for software-defined vehicles. GlobalFoundries (GF) has been selected as the manufacturing partner, giving Continental a robust platform for semiconductor production.

Philipp von Hirschheydt, a member of the Continental Executive Board and CEO of the upcoming Aumovio, emphasized that this move is essential for sustainable growth and increased self-reliance in semiconductor technology. The establishment of a fabless semiconductor organization is expected to mitigate geopolitical risks while supporting the company’s long-term strategy.

AESS will handle the design and verification of semiconductors internally, while GF will exclusively manufacture these products. With a global manufacturing presence across the US, Europe, and Asia, GF services several critical sectors including automotive and Internet of Things (IoT). Niels Anderskouv, president and COO at GF, highlighted the potential of their automotive-qualified process technologies to foster innovations in safe, connected, and autonomous vehicles.

Nino Romano, CTO of Continental Automotive, noted the importance of investment in semiconductors within the rapidly changing automotive landscape. The collaboration with GF is anticipated to facilitate the development of innovative products, enhancing Continental’s competitive edge.

This new AESS unit aligns with Continental’s commitment to increasing self-sufficiency, establishing a resilient supply chain, improving product quality, and minimizing time to market. The automotive semiconductor market is on track to reach around 110 billion Euros by 2032, underscoring the strategic importance of this initiative as automakers increasingly rely on advanced electronics.

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