October 3, 2025 /SemiMedia/ — Mercedes-Benz has spun off its Silicon Valley-based chip specialists into a new company, Athos Silicon, which will focus on developing next-generation semiconductors for autonomous vehicles and drones, the companies said.

The new entity, headquartered in Santa Clara, California, will operate independently with its own board and is set to pursue additional venture capital funding. As part of the spin-off, Athos Silicon has acquired intellectual property developed by the team and received what Mercedes termed a “significant” investment, though financial details were not disclosed.

Athos Silicon’s engineering team brings five years of experience from Mercedes-Benz’s North American R&D center. Their work centers on chiplet-based architectures that deliver high reliability for critical autonomous functions while substantially reducing power consumption.

CEO Charnjiv Bangar explained that packaging multiple chips into a single module can lower power consumption by 10 to 20 times compared to using discrete chips on a circuit board. “For electric vehicles, every watt saved in computing means more battery power can be directed to the wheels,” Bangar said.

The independent structure will allow Athos to engage with other automakers, including competitors of Mercedes-Benz. “We must remain neutral to serve the broader automotive industry,” Bangar added.