Volkswagen Group will develop advanced semiconductors in China for its locally produced semi-autonomous vehicles, stepping up efforts to reclaim market share in the world's largest car market, reports Hong Kong's South China Morning Post.

The German carmaker said that Carizon-a joint venture with artificial intelligence chip designer Horizon Robotics-will produce a system-on-a-chip (SoC) tailored for autonomous driving. Delivery is expected within three to five years.

Ralf Brandsatter, chairman and CEO of VW China, said the initiative reflects a deepening of its "In China, for China" strategy, aiming to move beyond localized production and into core technology development.

The SoC will process data from vehicle cameras and sensors, with computing capacity ranging from 500 to 700 tera operations per second (TOPS), a measure of trillions of operations per second.