June 26, 2025 /SemiMedia/ — Germany’s Continental AG said it has launched a new business unit focused on semiconductor design for automotive applications and signed a manufacturing partnership with GlobalFoundries to support production.

The new division, called Advanced Electronics and Semiconductors Solutions (AESS), will handle chip design and validation for Continental’s upcoming spin-off Aumovio, which is set to operate independently from September 2025. The chips will be tailored for electronic systems in software-defined vehicles, while manufacturing will be exclusively handled by GlobalFoundries.

“Establishing a fabless semiconductor business reinforces our technological independence and helps mitigate geopolitical risks,” said CEO Philipp von Hirschheydt.

The move comes amid soaring demand for automotive semiconductors driven by the adoption of features such as lane-keeping assist, adaptive cruise control, and collision detection — all of which require advanced chipsets.

Continental is also streamlining its operations. The company recently agreed to sell its drum brake plant and R&D facility in Cairo Montenotte, Italy, to private equity firm Mutares. Under the agreement, all employees and operations will be transferred as part of the asset deal.