Stellantis and Infineon Collaborate for Next-Gen Vehicles

MILAN (Reuters) – Automaker Stellantis (NYSE:STLA) and German chipmaker Infineon (OTC:IFNNY) announced on Thursday their cooperation to enhance power architecture for future vehicles.

The two companies revealed that they have signed supply and capacity agreements, forming the basis for their collaboration.

These agreements include Infineon's smart power switches, positioning Stellantis as one of the pioneers in adopting intelligent power network management and silicon carbide (SiC) semiconductors. This venture aims to standardize power modules and improve EV performance and efficiency.

Why It's Important

As the automotive industry advances towards electrification and interconnectivity, technology and software have become increasingly essential. Automakers are now keen to secure stable supplies of innovative tech components, particularly semiconductors.

Key Quotes

> "We are securing the supply of crucial semiconductor solutions required to continue our transition to an electrified future," said Maxime Picat, Stellantis Chief Purchasing and Supplier Quality Officer.

> "Our semiconductors drive the decarbonization and digitalization of mobility. They enhance vehicle efficiency and enable software-defined architectures," stated Peter Schiefer, president of Infineon’s Automotive division.

Context

A post-pandemic supply crunch, especially the global semiconductor shortage, has significantly hindered automotive production in recent years, leading to millions of lost vehicles in output.