In May 2022, French Renault factories were forced into technical unemployment. Its competitor Stellantis suffered similar setbacks in the following months – and even again in 2023. In both cases, the factor was the same: shortage of semiconductors.
These components are indispensable in today’s vehicles. It is therefore strategic for manufacturers to secure their supplies. This is the policy currently pursued by Stellantis, owner of the brands Alfa Romeo, Chrysler, Citroën, Dodge, Fiat, Jeep, Lancia, Maserati, Opel and Peugeot.
Stellantis prepares its own production of components
The manufacturer announces that it has entered into various agreements directly with semiconductor suppliers. In total, he has signed orders until 2030 for a value of more than 10 billion euros.
“Semiconductors play a key role in vehicles, a real driver of Stellantis’ transformation into a sustainable mobility tech company, as defined in the Dare Forward 2030 plan”, justifies the manufacturer.
These supply contracts relate to different products. They include silicon carbide (SiC) MOSFETs, “essential components for the autonomy of electric vehicles”, details the company.
Its orders also cover the microcontrollers (MCU), necessary in the electrical architecture of its STLA Brain technology, and finally the System-on-a-chip or SoC. These components go into making high-performance computing units, useful for infotainment systems and driver assistance functions.
To supply itself with semiconductors, Stellantis relies on several strategic partners, including Infineon, NXP, onsemi and Qualcomm. But the manufacturer is also preparing to reduce its dependence by developing its own components. In this perspective, Stellantis “is also working with aiMotive and SiliconAuto.”
Database, greenlist and demand prediction
Preventing production stoppages relies on a supply policy, but also on better forecasting of needs in terms of electronic chips. This is what the company points out.
Stellantis thus claims a multidimensional strategy. To run it, it acquires a database of semiconductors. This must “ensure full transparency on the availability of microchips.”
The manufacturer also relies on “a systematic risk assessment in order to proactively avoid and eliminate obsolete components” and therefore a forecast of long-term demand for chips.
Stellantis further announces the creation and implementation of a Green List. This list is intended to reduce the diversity of semiconductors. Finally, in the event of a shortage of microchips, Stellantis will take control of component allocation.
“Several hundred very different semiconductors are integrated into our cars. We have designed a complete ecosystem to limit the risk that a single missing chip could bring our lines to a halt”, says Maxime Picat, Chief Purchasing and Supply Chain Officer.