Volkswagen is adjusting its approach in China as it strives to catch up in the electric vehicle race, a shift that now includes replacing NVIDIA chips in favor of domestic chip partners. The company is increasingly relying on Chinese firms such as Horizon Robotics and electric vehicle maker XPeng, which has developed its own internally designed "Turing" chip. Volkswagen has already implemented this chip in the new ID. UNYX 08 electric SUV, which began production in Hefei and is expected to start deliveries by the end of June. The vehicle is equipped with Level 2 driving assistance systems capable of supporting both highway and urban road driving. This move reflects the broader trend of accelerating technological localization within China's highly competitive electric vehicle market. Volkswagen's joint venture with Horizon, Coretronic, is also working on developing its own advanced automotive chips, a process estimated to take approximately three to five years.