Shanghai (Gasgoo)- Volkswagen Automatic Transmission (Tianjin) Co., Ltd. and Leadrive Technology (Shanghai) Co., Ltd. recently signed a strategic memorandum of understanding in Tianjin covering automotive power modules.Image source: Leadrive Technology The two companies plan to collaborate on the development and industrialization of silicon carbide power semiconductor modules for new energy vehicles. The partnership is expected to strengthen Volkswagen's localized supply chain for key electrified powertrain components in China.The companies did not disclose any specific vehicle programs, investment commitments or production timetable under the memorandum.The agreement builds on an existing technical relationship between Leadrive Technology and Volkswagen Group. Their previous cooperation has covered electric-drive systems and dual-controller solutions for hybrid powertrains, while the latest initiative extends that relationship into closer coordination on power semiconductor modules.Future joint development will focus on SiC modules, integrated power bricks and advanced electric-drive solutions. By coordinating development across power semiconductors, electronic control systems and complete electric drives, the partners aim to bring high-performance electrified powertrain technologies into production and support their continued evolution.The initiative aligns with Volkswagen Group's "In China, for China" strategy, under which the automaker is expanding local development and sourcing as it accelerates its transition toward electrified and intelligent vehicles. Volkswagen's Tianjin operation is one of the group's key component manufacturing and research facilities in China and has expanded its portfolio in recent years to include several electric motor products.Founded in 2017, Leadrive Technology develops power semiconductor modules, motor controllers and integrated power bricks in-house. Its approach combines purpose-built power module engineering with the vertical integration of electronic control systems, enabling it to provide electrified propulsion solutions to automakers worldwide.