BERLIN: Volkswagen has set up a years-long partnership with US chip maker Qualcomm to develop automated driving technology, with the contract set to run until 2031, the German daily Handelsblatt reported on Monday.

The car giant will use Qualcomm’s system-on-a-chip (SoC), developed specifically for automated driving, across all brands worldwide starting in 2026, the newspaper said citing company sources.

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Volkswagen CEO Herbert Diess travelled to Qualcomm’s headquarters in San Diego in mid-April, where they agreed to the conditions of the deal, which sources say will cost VW around 1 billion euros, according to Handelsblatt.