Stellantis Launches Semiconductor Strategy to Ensure Supply Security

As the auto industry’s demand for semiconductors increases, Stellantis in Auburn Hills is implementing a multifaceted strategy designed to manage and secure the long-term supply of microchips.
729
Microchip production line
Stellantis has launched a program to make sure it has the computer chips needed to power its vehicles. // Stock photo

As the auto industry’s demand for semiconductors increases, Stellantis in Auburn Hills is implementing a multifaceted strategy designed to manage and secure the long-term supply of microchips.

The strategy has the company creating a semiconductor database as well as performing a systematic risk assessment to avoid legacy parts, long-term chip level demand forecasting to avoid future chip shortages, and the purchasing of parts from chipmakers to achieve long-term securitization of chip supply.

“An effective semiconductor strategy requires a deep understanding of semiconductors and the semiconductor industry,” says Maxime Picat, chief of 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 (silicon carbide metal-oxide-semiconductor field-effect transistor) 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 $11.19 billion (€10 billion) through 2030.

The supply agreements cover a variety of 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, and 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 powering the Stellantis transformation into a sustainable mobility-tech company as part of the company’s Dare Forward 2030 campaign.