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BMW says long-term contract will secure millions of microchips a year

December 8, 2021
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BMW signed a long-term deal to secure semiconductors for in-car lighting systems after a global shortage of the components led to shutdowns at some of its factories.

The automaker has signed an agreement with Inova Semiconductors and Globalfoundries, guaranteeing the supply of “several million” chips a year.

The components will provide controls for ambient lighting systems that will first be used in the BMW iX full-electric crossover.

“We are deepening our partnership with suppliers at key points in the supplier network and synchronizing our capacity planning directly with semiconductor manufacturers and developers,” Andreas Wendt, a board member responsible for purchasing, said in a statement on Wednesday.

BMW’s deal is another sign that automakers are sidestepping traditional partsmakers to instead deal directly with semiconductor manufacturers to secure vital chip supplies.

Stellantis on Tuesday unveiled a nonbinding accord with Foxconn owner Hon Hai Technology Group for the design of four new families of automotive chips.

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