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 an 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 company said.

The strategy 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 said it has started to engage with semiconductor providers like Infineon, NXP Semiconductors, onsemi, and Qualcomm to further improve its STLA platforms and technologies. In addition, the company 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 (approx. $11.2 billion) through 2030.