Stellantis NV (NYSE: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.
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It has started to engage with semiconductor providers like Infineon Technologies AG (OTC:IFNNY), NXP Semiconductors N.V. (NASDAQ:NXPI), ON Semiconductor Corp (NASDAQ:ON), and QUALCOMM Incorporated (NASDAQ: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.
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Price Action: STLA shares are trading higher by 0.21% at $18.70 on the last check Tuesday.
