July 18, 2023
Stellantis Implements Multifaceted Semiconductor Strategy to Ensure Supply Security, Drive Innovation
- Stellantis strategy combines agreements with chip makers for critical semiconductors, purchase of parts, and full visibility of future chip needs
- Semiconductors play key roles in delivering capabilities and features in upcoming Stellantis BEV-centric STLA vehicle platforms and STLA AI-powered software platforms
- Secure supply of powerful, innovative semiconductors helps Stellantis vehicles deliver on the bold goals of the Dare Forward 2030 strategic plan
AMSTERDAM – Semiconductors are the linchpin to the performance, safety, and customer features of Stellantis vehicles today and in the new state-of-the-art, BEV-centric STLA vehicle and technology platforms arriving soon. As the auto industry’s demand for semiconductors accelerates, Stellantis is implementing a multifaceted strategy designed to manage and secure the long-term supply of vital microchips. Developed by a cross-functional team, the strategy was created through a rigorous assessment of customer desires for advanced technology features and a keen focus on delivering the objectives laid out in the Stellantis Dare Forward 2030 plan.
The robust strategy, which is refined continuously, includes:
- implementation 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 level 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; and,
- the purchasing of mission-critical parts at chip makers including a long-term securitization of chip supply.
Stellantis has started to engage with strategic semiconductor providers like Infineon, NXP® Semiconductors, onsemi, and Qualcomm to further improve its all-new, state-of-the-art STLA platforms and technologies. In addition, Stellantis is working with aiMotive and SiliconAuto to develop its own differentiating semiconductors in the future.
“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. “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. SiC MOSFETS extend the range of our electric vehicles while the computation performance of a leading-edge SoC is essential for the customer experience and safety.”
To date, Stellantis has entered into direct agreements for semiconductors with a purchasing value of more than €10 billion through 2030. The supply agreements cover a variety of vital microchips, including:
- Silicon Carbide (SiC) MOSFETS, which are fundamental to the range of EVs.
- Microcontroller Unit (MCU), a key part of the computing zones for the STLA Brain electrical architecture.
- System-on-a-chip (SoC), where performance is essential for the high-performance computing (HPC) units that deliver the in-vehicle infotainment and autonomous driving assist functions.
Semiconductors play key roles in the vehicles that are driving the Stellantis transformation into a sustainable mobility tech company, as outlined in Dare Forward 2030. This includes enabling features and functions in the BEV-native STLA global platforms (Small/Medium/Large/Frame) and the seamless connectivity, remote upgradability, and the flexible service-oriented electrical/electronic architecture that underpins the STLA Brain, STLA SmartCockpit, and STLA AutoDrive artificial intelligence-powered platforms.
Stellantis N.V. (NYSE: STLA / Euronext Milan: STLAM / Euronext Paris: STLAP) is one of the world’s leading automakers and a mobility provider. Its storied and iconic brands embody the passion of their visionary founders and today’s customers in their innovative products and services, including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep®, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys. Powered by our diversity, we lead the way the world moves – aspiring to become the greatest sustainable mobility tech company, not the biggest, while creating added value for all stakeholders as well as the communities in which it operates. For more information, visit www.stellantis.com.
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