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Continental Launches New Semiconductor Unit to Strengthen Automotive Chip Supply Chain

Partners with GlobalFoundries to design and produce high-performance automotive chips for future vehicles

Mumbai, 23 June 2025 — Global automotive technology leader Continental has launched a new business unit called Advanced Electronics and Semiconductor Solutions (AESS) to enhance its role in the global automotive semiconductor supply chain.

Why Continental Started AESS

With vehicles becoming more software-driven, the demand for automotive semiconductors is growing fast. AESS will help Continental:

The automotive chip market is expected to reach €110 billion by 2032, highlighting the strategic importance of this move.

GlobalFoundries Partnership

Continental will design and verify chips, while GlobalFoundries will manufacture them across its facilities in USA, Europe, and Asia. This fabless model ensures quality and production reliability.

“By launching AESS, we are reducing geopolitical risk and securing chip supply for future automotive systems,” said Philipp von Hirschheydt, Executive Board Member, Continental.

Benefits for the Auto Industry

The move will improve:

India Impact and Future Outlook

This shift is also expected to benefit automakers in India by ensuring reliable access to chips for ADAS, infotainment systems, and smart vehicle components. With AESS, Continental becomes more self-reliant and future-ready in the automotive electronics space.

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