By LONDON, July 18, 2023 (Reuters) – Stellantis, the renowned global automotive conglomerate, has announced a momentous milestone in the pursuit of securing the future of electric vehicles (EVs) and high-performance computing. In a groundbreaking move, the company revealed that it has recently signed contracts worth an astonishing 10 billion euros ($11.2 billion) with leading semiconductor manufacturers, ensuring a steady supply of vital chips until 2030. This strategic move comes in the wake of a severe chip shortage that significantly impacted the auto industry worldwide, triggering production shutdowns and compelling automakers to seek alternative sources of semiconductor chips.
The pandemic-driven shortage of semiconductor chips caused a ripple effect throughout the automotive sector, leading to production delays and considerable disruptions. Stellantis, being a major player in the industry, recognized the urgency of addressing this issue and promptly forged partnerships with renowned chipmakers to ensure a stable supply chain. This proactive approach to securing the critical components for electric vehicles and high-performance computing functions demonstrates Stellantis’ commitment to staying ahead in an increasingly competitive market.
Maxime Picat, Stellantis’ chief purchasing and supply chain officer, emphasized the importance of diverse and comprehensive semiconductor integration within their vehicles. In a statement, Picat highlighted that Stellantis cars incorporate hundreds of distinct semiconductors, indicating the complexity and sophistication of their automotive technology. To safeguard against potential disruptions caused by a shortage of any single chip, the company has meticulously crafted an ecosystem that ensures redundancy and resilience in its production lines.
Collaboration is key in today’s interconnected world, and Stellantis recognizes this fact wholeheartedly. To bolster its position at the forefront of automotive innovation, the company is actively collaborating with prominent chipmakers like Infineon, NXP Semiconductors, onsemi, and Qualcomm. By engaging with these industry leaders, Stellantis aims to further enhance its car platforms and technologies, ensuring that its vehicles remain at the cutting edge of automotive excellence.
The scope of the new supply agreements inked by Stellantis extends far beyond merely addressing the current chip shortage. The contracts cover a wide range of semiconductor types, including silicon carbide chips that significantly extend the range of electric vehicles. These chips play a pivotal role in improving the overall efficiency and performance of EVs, contributing to the acceleration of the global transition towards sustainable mobility.
Moreover, the agreements also encompass computing chips that enable the seamless operation of electric vehicles. With the increasing complexity of automotive technology and the incorporation of autonomous driving features, these computing chips are indispensable in providing the required processing power for a safe and efficient driving experience.
The forward-thinking approach of Stellantis is evident in its inclusion of high-performance computing chips within the supply agreements. These chips are set to revolutionize the in-car experience, delivering cutting-edge infotainment systems and advanced autonomous driving assistance functions. This holistic approach to semiconductor integration is testament to the company’s commitment to providing an unparalleled driving experience to its customers.
In conclusion, Stellantis has set a remarkable precedent in the automotive industry by securing contracts worth 10 billion euros with semiconductor makers. This significant investment not only addresses the current chip shortage but also paves the way for groundbreaking advancements in electric vehicles and high-performance computing. With its unwavering commitment to innovation and strategic partnerships with leading chipmakers, Stellantis is poised to lead the charge in shaping the future of the automotive landscape, one chip at a time.
