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Stellantis (STLA) Takes Charge With Robust Semiconductor Strategy
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The future of vehicles is electric and technologically advanced and at the heart of this innovation lie semiconductors. Semiconductors, often considered the nerve centers of the modern digital world, have secured their place as the driving force behind the performance, safety and customer-focused features of vehicles. Recognizing their pivotal role in the future of transportation, Italian-American automaker Stellantis (STLA - Free Report) is spearheading a strategic move to not only ensure an uninterrupted supply of these critical components but also to remain at the forefront of automotive innovation.
Stellantis’ BEV-Centric STLA Platforms
With the global shift toward cleaner, electrically-powered vehicles, Stellantis is prepping its upcoming battery electric vehicle (BEV)-centric STLA vehicle platforms to be highly innovative. Powering these platforms is an array of sophisticated semiconductors that ensure each vehicle's capabilities match the high expectations of consumers.
The all-encompassing strategy that Stellantis has crafted revolves around ensuring not just the present but also the future supply of these critical semiconductors. Drawing inspiration and direction from its ambitious Dare Forward 2030 strategic plan, Stellantis aims to combine cutting-edge automotive engineering with the endless possibilities offered by advanced semiconductor technology.
Key Components of Stellantis' Strategy
Integral to Stellantis’ approach is the establishment of a semiconductor database. This tool, more than just a repository, provides full transparency on the semiconductor content, making procurement and integration a fluid process. The company has put systematic risk assessment mechanisms in place, ensuring legacy parts that can pose bottlenecks in the future are proactively identified and replaced. This is further complemented by their long-term chip-level demand forecasting. Such forward-thinking ensures Stellantis can forge capacity securitization agreements with major chip makers and Silicon Foundries, guaranteeing a steady supply of these micro marvels.
Harnessing the Power of Partnerships
By collaborating with semiconductor giants like Infineon, NXP Semiconductors, onsemi, and Qualcomm, Stellantis is setting the stage to enhance its state-of-the-art STLA platforms. Further pushing the envelope, engagements with aiMotive and SiliconAuto are a testament to Stellantis' vision of crafting its own unique semiconductors in the not-so-distant future.
Stellantis’ direct agreements for semiconductors, valued at a staggering €10 billion through 2030, bear testimony to its commitment. These agreements span acoss vital microchips such as Silicon Carbide (SiC) MOSFETS, Microcontroller Units, and System-on-a-chip (SoC). Each of these components plays a distinct role, from boosting the range of EVs to powering high-performance computing units that serve in-vehicle entertainment and autonomous driving functionalities.
Maxime Picat, the chief purchasing and supply chain officer at Stellantis, perfectly captures the essence of its strategy. He cites the role of SiC MOSFETS in extending the range of its electric vehicles and the unrivaled computation performance of leading-edge SoCs as being crucial to safety and enhanced customer experience.
Driving Toward a Sustainable Future
Semiconductors are the lifeblood of the vehicles driving Stellantis' transformation into a pioneering sustainable mobility tech entity. The Dare Forward 2030 vision encapsulates this transformation, highlighting semiconductors’ role in enabling the BEV-native STLA global platforms. These semiconductors promise seamless connectivity, remote upgradability and a flexible service-oriented architecture — all hallmarks of the STLA Brain, STLA SmartCockpit, and STLA AutoDrive AI-powered platforms.
In a world where technology and transportation are becoming increasingly intertwined, Stellantis' proactive semiconductor strategy is not just commendable—it's essential. This commitment promises to shape the future of mobility, making it more efficient, safe and user-centric.
A few other top-ranked players in the auto space include Ford (F - Free Report) , PACCAR (PCAR - Free Report) and Cummins (CMI - Free Report) , each sporting a Zacks Rank #1.
The Zacks Consensus Estimate for F’s 2023 sales implies year-over-year growth of 6.6%. The 2023 EPS estimate has been revised upward by 4 cents in the past 30 days. The EPS estimate for 2024 has moved north by 3 cents in the past 30 days.
The Zacks Consensus Estimate for PCAR’s 2023 sales and earnings implies year-over-year growth of 15.6% and 36.35%, respectively. The 2023 EPS estimate has been revised upward by 1 cent in the past seven days.
The Zacks Consensus Estimate for CMI’s 2023 sales and earnings implies year-over-year growth of 17% and 31%, respectively. The EPS estimate for 2024 has moved north by 23 cents in the past 30 days.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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Stellantis (STLA) Takes Charge With Robust Semiconductor Strategy
The future of vehicles is electric and technologically advanced and at the heart of this innovation lie semiconductors. Semiconductors, often considered the nerve centers of the modern digital world, have secured their place as the driving force behind the performance, safety and customer-focused features of vehicles. Recognizing their pivotal role in the future of transportation, Italian-American automaker Stellantis (STLA - Free Report) is spearheading a strategic move to not only ensure an uninterrupted supply of these critical components but also to remain at the forefront of automotive innovation.
Stellantis’ BEV-Centric STLA Platforms
With the global shift toward cleaner, electrically-powered vehicles, Stellantis is prepping its upcoming battery electric vehicle (BEV)-centric STLA vehicle platforms to be highly innovative. Powering these platforms is an array of sophisticated semiconductors that ensure each vehicle's capabilities match the high expectations of consumers.
The all-encompassing strategy that Stellantis has crafted revolves around ensuring not just the present but also the future supply of these critical semiconductors. Drawing inspiration and direction from its ambitious Dare Forward 2030 strategic plan, Stellantis aims to combine cutting-edge automotive engineering with the endless possibilities offered by advanced semiconductor technology.
Key Components of Stellantis' Strategy
Integral to Stellantis’ approach is the establishment of a semiconductor database. This tool, more than just a repository, provides full transparency on the semiconductor content, making procurement and integration a fluid process. The company has put systematic risk assessment mechanisms in place, ensuring legacy parts that can pose bottlenecks in the future are proactively identified and replaced. This is further complemented by their long-term chip-level demand forecasting. Such forward-thinking ensures Stellantis can forge capacity securitization agreements with major chip makers and Silicon Foundries, guaranteeing a steady supply of these micro marvels.
Harnessing the Power of Partnerships
By collaborating with semiconductor giants like Infineon, NXP Semiconductors, onsemi, and Qualcomm, Stellantis is setting the stage to enhance its state-of-the-art STLA platforms. Further pushing the envelope, engagements with aiMotive and SiliconAuto are a testament to Stellantis' vision of crafting its own unique semiconductors in the not-so-distant future.
Stellantis’ direct agreements for semiconductors, valued at a staggering €10 billion through 2030, bear testimony to its commitment. These agreements span acoss vital microchips such as Silicon Carbide (SiC) MOSFETS, Microcontroller Units, and System-on-a-chip (SoC). Each of these components plays a distinct role, from boosting the range of EVs to powering high-performance computing units that serve in-vehicle entertainment and autonomous driving functionalities.
Maxime Picat, the chief purchasing and supply chain officer at Stellantis, perfectly captures the essence of its strategy. He cites the role of SiC MOSFETS in extending the range of its electric vehicles and the unrivaled computation performance of leading-edge SoCs as being crucial to safety and enhanced customer experience.
Driving Toward a Sustainable Future
Semiconductors are the lifeblood of the vehicles driving Stellantis' transformation into a pioneering sustainable mobility tech entity. The Dare Forward 2030 vision encapsulates this transformation, highlighting semiconductors’ role in enabling the BEV-native STLA global platforms. These semiconductors promise seamless connectivity, remote upgradability and a flexible service-oriented architecture — all hallmarks of the STLA Brain, STLA SmartCockpit, and STLA AutoDrive AI-powered platforms.
In a world where technology and transportation are becoming increasingly intertwined, Stellantis' proactive semiconductor strategy is not just commendable—it's essential. This commitment promises to shape the future of mobility, making it more efficient, safe and user-centric.
Stellantis currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Top-Ranked Auto Players
A few other top-ranked players in the auto space include Ford (F - Free Report) , PACCAR (PCAR - Free Report) and Cummins (CMI - Free Report) , each sporting a Zacks Rank #1.
The Zacks Consensus Estimate for F’s 2023 sales implies year-over-year growth of 6.6%. The 2023 EPS estimate has been revised upward by 4 cents in the past 30 days. The EPS estimate for 2024 has moved north by 3 cents in the past 30 days.
The Zacks Consensus Estimate for PCAR’s 2023 sales and earnings implies year-over-year growth of 15.6% and 36.35%, respectively. The 2023 EPS estimate has been revised upward by 1 cent in the past seven days.
The Zacks Consensus Estimate for CMI’s 2023 sales and earnings implies year-over-year growth of 17% and 31%, respectively. The EPS estimate for 2024 has moved north by 23 cents in the past 30 days.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.