Mercedes-Benz Spins Off Silicon Valley Chip Unit into New Company

Mercedes-Benz has created a new standalone company in Silicon Valley dedicated to developing advanced semiconductor technologies for future mobility. The automaker announced the formation of Athos Silicon, headquartered in Santa Clara, California, which will house a team of chip engineers who have been working under Mercedes-Benz Research & Development North America for the past five years.

The new entity will focus on building next-generation processors designed for self-driving cars, drones, and other intelligent vehicles. These chips aim to deliver enhanced safety while consuming significantly less energy than many existing semiconductor solutions, a crucial factor for autonomous and electric mobility.

By spinning off the group, Mercedes-Benz is giving Athos Silicon greater independence to accelerate innovation, attract outside investment, and potentially forge new partnerships within the broader technology ecosystem. Industry analysts note that such moves reflect a growing trend among automakers to take more control over chip design, ensuring that future processors are optimized for the unique demands of mobility applications.

The decision also comes amid heightened global competition in the semiconductor sector, with automakers and tech giants alike racing to supply the computing power needed for AI-driven transportation. By establishing Athos Silicon, Mercedes-Benz signals its intent not only to secure critical technology for its own vehicles but also to position itself as a player in the rapidly expanding automotive chip market.