Stellantis signs $11 bn contracts with semiconductor makers

Stellantis, the world’s third-largest carmaker, announced it has entered into contracts worth €10 billion ($11.2 billion) with semiconductor manufacturers, ensuring a stable supply of crucial chips for electric vehicles (EVs) and high-performance computing functions until 2030.
BE SemiconductorThe semiconductor purchase strategy of Stellantis, as part of the Dare Forward 2030 plan presented in March 2022, is aimed at achievement of its financial ambition of doubling net revenues by 2030 versus 2021 and sustaining double-digit adjusted operating income margins throughout the decade.

Maxime Picat, Chief Purchasing and Supply Chain Officer at Stellantis, emphasized the importance of semiconductors in modern vehicles, stating, “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.”

In addition to securing chip supply, Stellantis is collaborating with prominent chipmakers, including Infineon, NXP Semiconductors, onsemi, and Qualcomm, to enhance its car platforms and technologies further.

The newly established supply agreements with semiconductor manufacturers will encompass various chip types. Silicon carbide chips, known for extending the range of EVs, will be covered, along with computing chips required to operate electric vehicles effectively. Furthermore, high-performance computing chips will be incorporated to provide advanced infotainment and autonomous driving assistance functions.

By proactively addressing the semiconductor supply chain challenge, Stellantis aims to strengthen its position in the EV market and ensure a seamless driving experience for its customers, leveraging cutting-edge chip technology.

The long-term contracts and partnerships with semiconductor manufacturers reflect Stellantis’ commitment to innovation, sustainability, and resilience in an industry that increasingly relies on advanced semiconductor solutions for the vehicles of the future.

Latest

More like this
Related

SMIC revenue surges 34% as China semiconductor demand grows

Semiconductor Manufacturing International (SMIC) said its revenue grew 34...

Semiconductor sales surge 23.2% to $166 bn in Q3: SIA

Global semiconductor sales have reached $166 billion in Q3...

GlobalFoundries revenue drops 6% to $1.74 bn

GlobalFoundries Q3 2024 result indicated that its revenue fell...

Samsung Q3 results show it lost momentum in AI business

Samsung, announcing its financial result for Q3 2024, has...