Stellantis & Infineon announce SiC semiconductor partnership

Infineon Technologies and Stellantis have signed a non-binding memorandum of understanding as the first step towards a possible multi-year supply cooperation for silicon carbide (SiC) semiconductors.

Under the agreement, Infineon would reserve manufacturing capacity and supply corresponding chips to Stellantis’ direct Tier 1 suppliers for use in Stellantis-branded electric cars in the second half of the decade, according to the chipmaker. The potential procurement volume and capacity reservation are worth well over one billion euros, according to Infineon. Infineon does not specify by when a concrete framework agreement or a binding acceptance agreement will be reached.

Specifically mentioned are the CoolSiC Gen2p 1200 V and CoolSiC Gen2p 750 V models, which are part of the talks between Infineon and Stellantis. Uniform procurement of the semiconductors would also fit with Stellantis’ strategy to standardize, simplify and modernize platforms. The automaker plans to use four STLA platforms for electric cars in the future, serving all segments from small cars to heavy-duty U.S. pickups.

Semiconductors made of silicon carbide are even smaller and, above all, more efficient than silicon-based semiconductors. Thanks to their higher efficiency, not only is more energy transmitted, but less waste heat is generated in the process – which is why, for example, the cooling system can also be smaller and lighter as a result, further reducing energy requirements in the overall system.

“Compared to traditional power technologies, silicon carbide increases the range, efficiency and performance of electric vehicles,” said Peter Schiefer, Division President Automotive at Infineon. “With our leading CoolSiC technology and continuous investments in our manufacturing capacities, we are well positioned to meet the growing demand for power electronics in electromobility.”

In the memo accompanying the letter of intent with Stellantis, Infineon still states that a new SiC technologies fab in Kulim, Malaysia, is scheduled to begin production in 2024. However, there could also be additional production in Germany: Infineon has also announced plans to build a new chip fab in Dresden, Germany, to expand its 300-millimetre manufacturing capacity further. A prerequisite for the investment decision, however, would be “appropriate public funding.” The planned investment sum of five billion euros would be the largest single investment in Infineon’s history.

infineon.com (Stellantis MoU), infineon.com (Q3 business report as PDF)