Stellantis NV (NYSE: STLA ) made an announcement Tuesday stating that the Dodge Chrysler-parent has successfully entered into contracts with several semiconductor manufacturers to guarantee the flow of vital chips for electric vehicles and high-performance computing functions. The contracts are worth approximately 10 billion euros ($11.2B) and are set to run through 2030.
The global auto industry has only recently begun to fully recover from a pandemic-fueled shortage of semiconductor chips that forced many automakers to shut down production.
Stellantis said it is working with chipmakers Infineon (OTC: IFNNY ), NXP Semiconductors (NASDAQ: NXPI ), ON Semiconductor Corporation (NASDAQ: ON ), and Qualcomm (NASDAQ: QCOM ) to further improve its car platforms and technologies.
"We have hundreds of very different semiconductors in our cars," Maxime Picat, Stellantis' chief purchasing and supply chain officer said in a statement. "We have built a comprehensive ecosystem to mitigate the risk that one missing chip can stop our lines."
The franco-Italian car maker said that its new supply agreements through 2030 will cover silicon carbide chips used to extend electric vehicle range, computing chips to operate EVs and high-performance computing chips with the ability to provide infotainment and autonomous driving assist functions.
Shares of STLA are down 0.19% in mid-day trading on Tuesday.
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