Infineon, Stellantis set for major SiC semiconductor supply contract

Infineon, Stellantis set for major SiC semiconductor supply contract

Business news |
By Christoph Hammerschmidt

As a first step towards a possible multi-year supply cooperation for silicon carbide (SiC) semiconductors, Infineon Technologies and carmaker Stellantis have signed a memorandum of understanding, albeit a non-binding one. Under the agreement, Infineon would reserve manufacturing capacity and supply CoolSiC “bare die” chips to Stellantis’ direct Tier 1 suppliers in the second half of the decade. The potential procurement volume and capacity reservation are worth well over €1 billion, Infineon announced in a press release. 

The two partners are in advanced negotiations  to supply CoolSiC Gen2p 1200 V and CoolSiC Gen2p 750 V chips for electric vehicles under Stellantis’ brands. Due to the higher performance, reliability and quality of CoolSiC technology compared to other technologies, Stellantis would be able to build vehicles with longer range and lower consumption for an optimal user experience. Stellantis would be supported in its plan to standardise, simplify and modernise platforms.

“Compared to conventional powertrain technologies, silicon carbide increases the range, efficiency and performance of electric vehicles,” said Peter Schiefer, Division President Automotive at Infineon. “With our CoolSiC technology and thanks to continuous investments in our manufacturing capabilities, we are well positioned to serve the growing demand for power electronics for electromobility.”

Infineon generates a good third of its revenue from customers in the automotive industry and is continuously expanding the corresponding manufacturing capacities. In 2024, for example, a new factory for SiC technologies will start production in Kulim, Malaysia. In line with its multi-site manufacturing strategy, this will complement Infineon’s existing capacity in Villach, Austria.

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