BMW Signs Agreement With Chip Suppliers, Secure Million Semiconductors Per Year

BMW signs agreement with high-tech microchip manufacturer INOVA Semiconductors and feature-rich semiconductor foundry, GlobalFoundries.

The agreement will secure several million semiconductors per year.

The chips will first be used in the all-electric BMW iX model.

Chips are widely used in Internal Combustion Engined (ICE) cars as well as electric vehicles (EVs).

BMW Group says it has signed an 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 semiconductors (chips) will first be deployed in the BMW iX model before being rolled out in further models. Customer deliveries of the BMW iX electric sports utility vehicle 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.”

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BMW iX

“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.”

The first customer vehicles of the BMW iX electric SUV started rolling off the production line at Dingolfing Plant in June.

Chips are widely used in Internal Combustion Engined (ICE) cars as well as electric vehicles (EVs). They are found in everything from key fobs to entertainment systems and navigation controls.

The ongoing automotive chip shortage is expected to start easing in the second half of 2022, but the pressure will persist throughout 2022.

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