Continental AESS christened as (Advanced Electronics & Semiconductor Solutions) rolled out.
Continental has officially launched a new business unit—Advanced Electronics & Semiconductor Solutions (AESS)—dedicated to developing and managing semiconductors for next-generation vehicles. Continental AESS marks a pivotal move for the company as it aims to gain greater control over its chip supply and technological future amid rising semiconductor demands in the automotive sector.
With the automotive industry rapidly shifting towards software-defined vehicles (SDVs), the need for specialized semiconductors has surged. Continental AESS will operate as a fabless semiconductor unit, focusing on chip design and systems integration while leveraging strategic partnerships for manufacturing.
Meeting the Demand for Next-Gen Vehicle Chips
The global automotive chip market is projected to exceed €110 billion by 2032, driven by advances in electrification, autonomy, connectivity, and digital cockpit technologies. Semiconductor content in vehicles is now considered one of the most valuable components in modern car architecture.
To meet this demand, Continental AESS unit will focus on:
- Architecture design and verification of automotive-grade semiconductors
- Close collaboration with vehicle manufacturers and Tier-1 suppliers
- Managing long-term semiconductor sourcing and supply resilience
Continental aims to reduce its dependency on external chip vendors, enhance design flexibility, and strengthen system integration across its product lines, which include ADAS, infotainment, body electronics, and powertrain systems.
GlobalFoundries as Manufacturing Partner
Continental has partnered with GlobalFoundries (GF), a leading semiconductor foundry with a strong automotive track record, to produce chips designed by AESS. This collaboration ensures access to high-reliability manufacturing processes and global production capabilities.
Niels Anderskouv, President and COO of GlobalFoundries, commented, “Our silicon-proven portfolio of automotive-qualified process technologies and manufacturing capabilities across three continents will enable Continental to deliver innovative solutions for the next generation of safe, connected, and autonomous vehicles.”
GF brings to the table its advanced process nodes that are optimized for automotive requirements such as high-temperature performance, longevity, and functional safety.
Executive Comments from Continental
Philipp von Hirschheydt, a member of the Executive Board of Continental and designated CEO of the soon-to-be independent mobility division Aumovio, emphasized the strategic importance of AESS.
“Continental is committed to sustainable growth. The creation of this fabless semiconductor organization will strengthen our position in key technologies, reduce geopolitical risks, and enable us to become more self-reliant in a critical part of the automotive supply chain,” he stated.
Von Hirschheydt added that AESS is designed to align with Continental’s broader push to lead in the SDV revolution and support the company’s transition into a high-tech systems and software provider.
Strategic Objectives and Roadmap
Continental plans to roll out the first semiconductors from AESS by mid-2026. These initial offerings are expected to focus on areas such as power management, radar and safety ICs, and connectivity SoCs, which are increasingly central to modern automotive platforms.
The company has also committed to integrating AESS with its existing vehicle system development teams to ensure tight coupling between hardware and software.
Key Goals Include:
- Enhancing vehicle performance and customization through chip-level optimization
- Strengthening long-term supply chain resilience
- Establishing technology leadership in the automotive electronics domain
Broader Market Context and Timing
Continental’s move comes at a time when governments and industries across the globe are intensifying efforts to localize and secure chip supply chains.
From the US CHIPS Act to EU incentives for semiconductor production, automotive companies are under pressure to minimize the risks associated with chip shortages, geopolitical tensions, and logistical disruptions.
While many traditional OEMs and Tier-1 suppliers have historically relied on external chipmakers, the new wave of software-defined, high-compute vehicles is pushing industry leaders toward more vertical integration and closer control of critical technologies.
AESS positions Continental to be among a new generation of auto-tech companies that view semiconductors as a core business pillar—not merely as a procurement item.
Implications for Continental and GlobalFoundries
For Continental, the launch of AESS offers multiple strategic benefits:
- Increased control over component availability and system architecture
- Potential to lower costs and improve margins through better integration
- Differentiation in competitive vehicle electronics markets
For GlobalFoundries, the long-term partnership with Continental solidifies its role as a trusted manufacturing partner in the fast-growing automotive semiconductor space. It also expands GF’s footprint in high-reliability sectors where demand is expected to grow significantly.
Continental AESS and the Future of Aumovio
The AESS unit is also expected to play a major role in the structure of Aumovio—the forthcoming independent Continental business that will focus on intelligent mobility and advanced automotive systems.
Continental has announced its intention to spin off Aumovio by 2025, and AESS will serve as one of its foundational technology arms.
The spin-off is aimed at giving Continental the flexibility to scale its automotive tech operations with the agility of a specialized company.
Outlook and What Comes Next
The next key milestones for AESS and Continental include:
- Recruitment and onboarding of semiconductor engineering talent across Europe and North America
- Establishing internal chip development and validation labs
- Prototyping first-generation Continental AESS chipsets by late 2025
- Launching production with GlobalFoundries by mid-2026
