Stellantis Furthers Dare Forward 2030 with Semiconductor Strategy
The semiconductor chip shortage of 2021 rocked the auto industry. During the 2020 COVID-19 pandemic, consumer goods were bought up like hot cakes, and semiconductor chips were used up for a different avenue. Once automakers started producing again, they found themselves without the resources to meet target goals or introduce new features. Thus began the rush to sign contracts and shake hands to secure a steady supply. Stellantis did this and more, signing an agreement between Hon Hai Technology so Stellantis could get purpose-built semiconductors, and again when the two formed SiliconAuto. It’s all a part of the Dare Forward 2030 business strategy.
In the coming years, Stellantis will be building many of its vehicle on a new set of platforms called “STLA Platform”. Known as “Small, Medium, Large, and Frame”, the STLA platform will become the underpinning for the future lineup, already planned to become the platform for future Dodge models (Large). In early July 2023, Stellantis unveiled the Medium BEV STLA platform, one of the first global BEV-by-design platforms to be introduced, and claiming a best-in-class range of 435 miles. Versatile and flexible, the STLA platform series has a great vision, but will definitely require a steady supply of semiconductors with all they promise.
“An effective semiconductor strategy requires a deep understanding of semiconductors and the semiconductor industry…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.” – Maxime Picat, chief purchasing and supply chain officer at Stellantis
Working with strategic semiconductor providers like Infineon, NXP Semiconductors, onsemi, and Qualcomm, Stellantis is slowly ensuring it has its own supply of semiconductor chips to fuel its production of these new state-of-the-art, BEV-centric STLA vehicle and technology platforms. The Dare Forward 2030 strategy is refined continuously, but as of now, the automotive group wants to (1) implement a semiconductor database to have a clear idea of how many semiconductors are available for future production, (2) remove parts and components that are no longer manufactured or viable, keep a long-term chip level demand to fund and support current investments and contracts, (3) put Stellantis in control of the allocation, and of course, (4) secure semiconductor chip supply. A lot of this can be done with the aforementioned formation of SiliconAuto, making Stellantis the new supplier for semiconductor chips in the industry.
Aside from semiconductor providers, Stellantis has already entered into several agreements with a purchasing value of more than $11 billion through 2030 to provide their future battery-electric vehicles (BEVs) with new features and better capability. This includes Silicon Carbide (SiC) MOSFETS to support the increase of BEV driving range, Microcontroller Unit (MCU) to build out the STLA Brain electrical architecture, and System-on-a-chip (SoC) to provide future models with infotainment systems and autonomous driving functions. A prime example of this is the STLA SmartCockpit that debuted at the 2022 Consumer Electronics Show.
Stellantis sure is spending money these days. Let’s hope its future lineup is worth it. If you’re looking forward to features like the STLA SmartCockpit, you can always show your support by buying a new vehicle from Stellantis at Aventura Chrysler Jeep Dodge Ram. Make sure the auto group stays afloat while it sets out all of these expensive goals.