Stellantis Unveils Semiconductor Strategy To Gain Supply Security

Stellantis NV STLA said it is implementing a multifaceted strategy designed to manage and secure the long-term supply of vital microchips.

It includes implementing a semiconductor database to provide full transparency on the semiconductor content.

The company will look for systematic risk assessment to avoid and proactively remove legacy parts and a long-term chip level demand forecast to support capacity securitization agreements with chip makers and Silicon Foundries.

Stellantis will opt to purchase mission-critical parts at chip makers, including a long-term securitization of chip supply.

Also Read: Stellantis To Ramp Up Production In Italy, Aiming To Reach Over 1 Million Units

It has started to engage with semiconductor providers like Infineon Technologies AG IFNNY, NXP Semiconductors N.V. NXPI, ON Semiconductor Corp ON, and QUALCOMM Incorporated QCOM to further improve its platforms and technologies.

To date, Stellantis has entered into direct agreements for semiconductors with a purchasing value of more than €10 billion through 2030. 

The agreements include the supply of Silicon Carbide (SiC) MOSFETS for EVs, Microcontroller Unit (MCU), System-on-a-chip (SoC), which is crucial for in-vehicle infotainment and autonomous driving assist functions.

Semiconductors play key roles in the vehicles driving the Stellantis transformation into a sustainable mobility tech company, as outlined in Dare Forward 2030.

Also Read: Stellantis Explores Rare Earth Supply Deal With NioCorp, Sourcing Produce At Elk Creek Project, Nebraska

Price Action: STLA shares are trading higher by 0.21% at $18.70 on the last check Tuesday.