How does GM want to deal with the chip shortage?

How does GM want to deal with the chip shortage?


Automakers are starting to show similar approaches to overcoming electronic component shortages and preventing them from recurring in the future. Like Nissan Motor, General Motors Corporation plans to reduce the number of unique chips by 95% in the future, moving to wider use of general-purpose microcontrollers. Particular attention will be paid to cooperation with suppliers with a manufacturing base in the United States.

At an investor event, GM President Mark Reuss said that the corporation is now working with seven chip suppliers to create three new families of microcontrollers that can reduce the number of unique chips in future vehicles by almost 95%. The automaker’s partners in this context include Qualcomm, STMicroelectronics, TSMC, Renesas, NXP, Infineon and ON Semi.

The main flow of funds associated with this initiative will be directed to the United States and Canada, if we talk about the geographic principle of concentration of investments. In the next few years, according to the president of GM, the corporation’s demand for semiconductor components will more than double. This will be facilitated by the development of a fleet of electric vehicles and cars with automatic control systems.

A new generation of microcontrollers will combine the functions of several separate chips. This will not only reduce cost and design complexity, but also improve product quality and predictability of supply, according to a GM spokesman. It is planned to produce 10 million new generation chips per year. This initiative will allow the corporation to create a more reliable supply ecosystem, ready at any time to meet the needs of the automaker. As you know, Ford and GlobalFoundries also announced a partnership this week, so GM will not be an isolated example.

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