Stellantis orders €10 billion of automotive chips

Stellantis orders €10 billion of automotive chips

Business news |
By Peter Clarke

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Car maker Stellantis has entered into €10 billion (about US$11.2 billion) of chip purchasing agreements as part of a broad semiconductor strategy.

Stellantis NV (Amsterdam, the Netherlands), the automotive company formed by the merger of Fiat, Chrysler Automobiles and PSA Group has said it has engaged chip companies such as Infineon, NXP Semiconductors, Onsemi, and Qualcomm to further improve its battery electric vehicle platform known as STLA – pronounced stella. The purchasing agreement run through to 2030, Stellantis said.

In addition, Stellantis is working with aiMotive and SiliconAuto to develop its own differentiating semiconductors (see Stellantis, Foxconn form SiliconAuto JV to provide automotive chips).

The supply agreements cover SiC power MOSFETs; microcontrollers used to control drive and safety; and high-performance microprocessors and SoCs used for in-vehicle infotainment and autonomous driving assist functions.

The purchasing plan is part of a strategy to designed to ensure supply security and drive innovation, the car company said.

Other facets of that strategy include:

  • construction of a semiconductor database to provide full transparency on the semiconductor content;
  • systematic risk assessment to avoid and proactively remove legacy parts;
  • long-term chip demand forecasting to support capacity securitization agreements with chip makers and silicon foundries;
  • implementation and enforcement of a Green List to reduce chip diversity and – in case of future chip shortages – to put Stellantis in control of the allocation;
  • the purchasing of mission-critical parts at chip makers including a long-term securitization of chip supply.

“An effective semiconductor strategy requires a deep understanding of semiconductors and the semiconductor industry,” said Maxime Picat, Chief Purchasing and Supply Chain Officer at Stellantis, in a statement. “We have hundreds of very different semiconductors in our cars. We have built a comprehensive ecosystem to mitigate the risk that one missing chip can stop our lines. At the same time, key vehicle capabilities directly depend on the innovation and performance of single devices.”

Related links and articles:

News articles:

Stellantis, Foxconn form SiliconAuto JV to provide automotive chips

Cars are too complex says Stellantis CTO, cuts number of chips

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