Photo: Stellantis Europe
Despite the predictions some automotive analysts levied this time last year, the global microchip shortage is still very much real, like a heart attack. In an era where brand-new, quality microchips are a commodity valued in the same way something a cartel might make, Stellantis looks to be about to get their big fix.
The third largest international automaker with a presence in Detroit won't be getting their chip fix from El Chapo or Pablo Escobar but from the German tech manufacturer Infineon. Founded in 1999 and located in the village of Neubiberg, southeast of Munich, Infineon is a former satellite company of the lauded Siemens conglomerate that has its fingers in more industries than a squid has tentacles.
Safe to say, Infineon survived this separation and then some. With current assets estimated at €23.33 billion (€24,083,908,950 and over 50,000 employees, there's a considerable parity between this European chip fabricator and more famous contemporaries in Asia. Stellantis is going to need every bit of this manpower to have a hope of satisfying a proverbial wave of new electric vehicle orders.
Normal ICE cars still need their share of chips as well. But electric cars like the new Peugeot e-308? They're a whole different ballgame. That's why an initial investment of around $1.03 billion (€1.00 billion) will likely be followed by several further installments. At least as far as Europe is concerned, it should keep Stellantis production satisfied in the short term once it commences.
As for North America, further demand for chips in the form of the new Dodge Hornet PHEV and the all-electric Ram 1500 that's about as inevitable at this juncture as tax season is bound to push production quotas even further. Whether this most recent collaboration with a German tech giant is the key piece that sustains Stellantis through the chip shortage remains to be seen. If it is, we'll no doubt look back on this day as a game changer for the fledgling multinational automaker.
Safe to say, Infineon survived this separation and then some. With current assets estimated at €23.33 billion (€24,083,908,950 and over 50,000 employees, there's a considerable parity between this European chip fabricator and more famous contemporaries in Asia. Stellantis is going to need every bit of this manpower to have a hope of satisfying a proverbial wave of new electric vehicle orders.
Normal ICE cars still need their share of chips as well. But electric cars like the new Peugeot e-308? They're a whole different ballgame. That's why an initial investment of around $1.03 billion (€1.00 billion) will likely be followed by several further installments. At least as far as Europe is concerned, it should keep Stellantis production satisfied in the short term once it commences.
As for North America, further demand for chips in the form of the new Dodge Hornet PHEV and the all-electric Ram 1500 that's about as inevitable at this juncture as tax season is bound to push production quotas even further. Whether this most recent collaboration with a German tech giant is the key piece that sustains Stellantis through the chip shortage remains to be seen. If it is, we'll no doubt look back on this day as a game changer for the fledgling multinational automaker.
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