Germany and Austria are dividing labour in the next phase of automotive supply chains: German factories are being tapped to produce secure, Europe‑made connectivity hardware, while Austrian firms are exporting software and safety middleware that will run inside software‑defined vehicles (SDVs). That split is visible in two concrete developments that matter to drivers, dealers and factory workers alike: Kontron’s new 5G module line in Düsseldorf and the rise of TrustMotion (formerly TTTech Auto) as a coordinated software partner across European SDV projects.
Germany: a small but strategic reshoring of 5G hardware
Kontron AG started production of an automotive 5G Network Access Device line in Düsseldorf on 13 July 2026 and says it expects an initial supply of around 150,000 modules to a leading European OEM — a deal Kontron values in the "double‑digit million" euro range and which could more than triple if rolled out to additional platforms. The company presents the move as a deliberate bid to shorten supply chains and offer a European alternative for critical communications hardware.
For Germany the win is practical: the modules are developed in Berlin and manufactured in Düsseldorf, creating higher‑value production on German soil and reducing dependence on non‑European suppliers for parts used in over‑the‑air updates, telematics and future V2X services. Kontron’s CEO framed the order as a strategic vote for cybersecurity and supply‑chain resilience.
Austria: software, safety and EU projects
Across the border Vienna‑based TrustMotion (the company formerly operating as TTTech Auto, acquired by NXP) is positioning itself as the safety‑critical software partner for SDVs. The company describes its renaming as following NXP’s acquisition in June 2025 and emphasises its role in safety middleware, certification and supplier ecosystems for software‑defined cars. TrustMotion lists ISO/SAE 21434 cybersecurity and ISO 9001 certification among its credentials.
That software role is reinforced by EU‑funded programs that include Austrian partners: Shift2SDV, an EU Chips Joint Undertaking project running from 1 July 2025 to 30 June 2028, targets middleware, microservice frameworks and orchestration for SDVs with 69 partners across Europe and explicit top‑up funding from national authorities including Austria and Germany. Firms such as TrustMotion/TTTech are active contributors to these efforts, linking Austrian software know‑how to vehicle‑level implementations.
Meanwhile Austrian and German firms are also shipping new test and tool products for networks and validation. TTTech Group recently unveiled a "Power Family" of automotive network test instruments at the Automotive Testing Expo in Stuttgart — equipment that supports the new in‑vehicle Ethernet and TSN test regimes OEMs now require.
What this means for the market
The split — hardware assembly and volume connectivity in Germany, software, middleware and systems integration in Austria — is not a neat division so much as a pragmatic specialisation. For OEMs it reduces single‑source risk: German production of 5G NADs (network access devices) shortens logistics and helps meet cybersecurity and procurement demands, while Austrian software partners accelerate SDV feature development and safety certification. For suppliers it means procurement teams must factor in both cross‑border lead times and software integration costs; for employees, higher‑value electronics assembly and software engineering jobs will grow regionally even as older mechanical roles continue to shrink.
The developments underline a wider European trend: suppliers that combine secure European manufacturing (Kontron) with certified SDV software (TrustMotion/TTTech) have a competitive edge when OEMs need both components and compliance guarantees in the same value chain. Expect procurement and Tier‑1 strategies in Germany and Austria to reflect that two‑track playbook through 2027.
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Sources: Kontron AG, TrustMotion (TTTech), TTTech/Shift2SDV, LEONI.
