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Mercedes-Benz establishes a chip company

2025-10-10

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Mercedes-Benz on Friday spun off a group of Silicon Valley chip experts into a new company dedicated to building the next generation of computing brains for self-driving cars, drones and other vehicles.

Athos Silicon, headquartered in Santa Clara, California, has a team of engineers who spent five years at Mercedes-Benz North America Research and Development, developing new chips that are secure enough for use in cars while using less energy than existing chips.

As part of the spinoff, Athos will receive intellectual property developed by the group and what Mercedes-Benz called a "significant" investment, though neither the automaker nor Athos disclosed the value of the deal.

Reliability is paramount for automotive chips, so key autonomous driving functions are often handled by two or more separate chips to provide backup in the event of failure. The Athos team developed a method to achieve the same reliability using "chiplets," tiny chips that can be packaged together.

Athos Silicon CEO Charnjiv Bangar said in an interview on Friday that packaging the chips together reduces power consumption by 10 to 20 times compared to separate chips that must communicate with each other via a circuit board. Such energy savings are crucial for electric vehicles, where the car's computing cores must compete with the wheels for limited battery power.

"For the electrified future, electricity is the new currency," Bangar said.

Athos Silicon plans to raise venture capital from other investors. Bangar declined to disclose Mercedes-Benz's specific stake, but said the automaker would be a minority shareholder and Athos Silicon would have an independent board.

"Independence is important for Athos so we can reach out to other automakers, Mercedes' competitors. We need to ensure we maintain a neutral approach," Bangar said.

Source: Content from investing



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