Automotive OEM Stellantis is accelerating its plans to transition to electrified fleets and has implemented a new strategy designed to secure a long-term supply of semiconductors.
The goal is to have a supply of semiconductors as demand increases plus to ensure enough microchips if there are future issues with the supply chain. This comes after the automotive industry was hit hardest by the semiconductor shortage during the COVID-19 pandemic.
Stellantis recently introduced its first electric vehicle (EV) platform for medium cars while simultaneously making a deal for rare Earth elements for the future of electrified models. Additionally, the company invested in Lyten’s 3D graphene applications including its lithium-sulfur EV batteries.
As part of the strategy, the company is engaged with chipmakers:
- NXP Semiconductors
- Onsemi
- Infineon
- Qualcomm
Additionally, it is working with aiMotive and SiliconAuto to develop its own semiconductors in the future to differentiate itself from other automotive OEMs. SiliconAuto is the 50/50 joint venture that Stellantis formed with Hon Hai Technology Group (Foxconn) to design and produce semiconductors for the automotive industry. Foxconn will begin manufacturing the chips starting in 2026.
Stellantis has already entered into direct supply agreement valued at $11 billion for silicon carbide (SiC) MOSFETS, which are a fundamental electronic component for electric vehicles, microcontrollers, a central IC for Stellantis’ STLA EV architecture and system-on-chips (SoCs) for high-performance computing (HPC) units for in-vehicle infotainment and autonomous driving assist functions.
The securing of semiconductors strategy specifically will implement: a semiconductor database; systematic risk assessment to avoid and proactively remove legacy parts; long-term chip level demand forecasting; capacity agreements with chipmakers and silicon foundries; implementation and enforcement of a Green List to reduce chip diversity; and the purchasing of parts at chip makers including a long-term securitization of chip supply.
