Munich. The BMW Group is exploring new ways of
working with suppliers and, in the case of strategically important
components, becoming more closely involved in the supplier network. To
secure semiconductor supplies for the long term, the company has
concluded a direct supply assurance agreement with high-tech microchip
developer INOVA Semiconductors and GlobalFoundries, a manufacturer of
feature-rich semiconductors. The agreement guarantees the BMW Group
the supply of several million microchips per year. The microchips will
be used in the ISELED smart LED technology co-developed by the BMW
Group, which will be deployed for the first time in the BMW iX and
rolled out in further models. Customer deliveries of the BMW iX got
underway in early November.
“We are deepening our partnership with suppliers at key points in the
supplier network and synchronising our capacity planning directly with
semiconductor manufacturers and developers. This improves planning
reliability and transparency around the volumes needed for everyone
involved and secures our needs for the long term,” says Dr Andreas
Wendt, member of the Board of Management of BMW AG responsible for
Purchasing and Supplier Network. “This pioneering agreement marks the
next logical step in securing our supplies in an even more balanced
and proactive manner going forward.”
This agreement is an example of the commitment to build a more
resilient supply chain partnership approach to regain supply-demand
balance for chips in the automotive industry as well as efforts to
further accelerate technology innovation.
“This agreement directly with an OEM certainly marks new territory
for us as a semiconductor manufacturer,” says Robert Kraus, CEO of
INOVA Semiconductors. “But we firmly believe this innovative approach
to partnership throughout the production chain will help us achieve
our objectives: In this way, we can secure supplies for our end
customers and ensure high planning reliability throughout the long
chip production cycles. It’s a real win-win.”
“GlobalFoundries is committed to building stronger relationships with
the automotive industry to deliver innovation and address the growing
demand for feature-rich chips,” says Mike Hogan, senior vice president
and general manager of Automotive, Industrial and Multi-market at
GlobalFoundries. “This supply assurance agreement with the BMW Group
and INOVA demonstrates how the companies are partnering to develop
innovative smart LED technology for the new BMW iX and to develop new
technologies for the car of tomorrow.”
Several thousand semiconductors per car
Depending on the equipment options, every car contains several
thousand of semiconductors that are essential for all electronic
devices. They serve various functions by performing arithmetic and
control tasks in computers, storing data or even handling multiple
tasks at the same time. The share of electronic components in vehicles
is likely to increase further in the future.