Volkswagen, STMicroelectronics Collaborate To Counter Auto Chip Crisis - Volkswagen (OTC:VWAGY), STMicroelectronics (NYSE:STM)

Volkswagen AG VWAGY software unit CARIAD and STMicroelectronics N.V. STM collaborated to develop a new semiconductor.
The financial terms of the transaction remain undisclosed.
The move comes amid the global chip crisis hampering the auto industry.
The crisis got further exacerbated as chipmakers focused on smartphones, PCs, and laptops as the world moved online during the pandemic for work, study, and recreation at the cost of the carmakers who had to opt for production cuts. The Russia-Ukraine crisis added the last nail to the coffin.
Volkswagen and ST zeroed on leading contract chipmaker Taiwan Semiconductor Manufacturing Company Ltd TSM to manufacture the SoC wafers for ST. CARIAD looked to secure the chip supply for the Volkswagen cars by the move.
The chip will be part of the Stellar microcontroller family of semiconductors.
Previously, CARIAD shared plans to source SoC chips from Qualcomm Inc QCOM for autonomous driving up to Level 4 standards.
The pandemic played a significant role in ravaging the semiconductor supply chain.
Price Action: STM shares traded higher by 0.33% at $34.49 on the last check Wednesday.