Continental Group’s automotive sector has taken a strategic step to increase resilience as it established its own semiconductor unit within the organization.

The new Advanced Electronics & Semiconductor Solutions (AESS) will design and verify automotive semiconductors to fulfill internal demand. Moreover, Continental has also tapped GlobalFoundries (GF) as the manufacturing partner for this organization.

The automotive industry’s demand for semiconductors to enhance electronic content for software-defined vehicles (SDVs) is increasing. In fact, Continental said the global automotive semiconductor market is estimated to reach about 110 billion euros by 2032. Therefore, the company sees fit for organizations to invest in semiconductor development to be successful in the long run.

Philipp von Hirschheydt, member of the Continental Executive Board and CEO of the future Aumovio said the decision to develop semiconductors internally hinges on the future success of Continental’s automotive group.

“The creation of this fabless semiconductor organization 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 Hirschheydt.

Investment in Technology, Self Sufficiency

AESS will internally design and verify semiconductors. On the other hand, GF will exclusively manufacture these semiconductors for Continental.

GF has a global manufacturing footprint across the United States as well as countries in Europe and Asia. Therefore, the company can deliver power-efficient, high-performance solutions for several industries including automotive, Internet of Things, communications infrastructure, smart mobile and other high-growth markets.

The establishment of AESS aligns with the Automotive Board’s long-term strategy to invest in technology and increase self-sufficiency.

The new organization supports Continental’s automotive group sector in various ways. This initiative aims to establish a resilient supply chain, improve product quality, and reduce time to market. The organization 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 organization, the AESS organization will help to strengthen Automotive’s position as an automobile component manufacturer. With a strong organizational structure and a streamlined setup, AESS is creating new internal development opportunities and laying the foundation for future growth in a dynamic market environment.

Niels Anderskouv, president and chief operating officer at GF said their silicon portfolio has been proven of automotive-qualified process technologies and has the support of its resilient global footprint and track record of manufacturing excellence. Therefore, Anderskouv said this will enable Continental to deliver innovative solutions for the next generation of safe, connected and autonomous vehicles.

25 June 2025