Skip to content
  • Blog
  • Careers
  • Demo
  • Login
  • (408) 883-8053
  • [email protected]
Facebook-f Twitter Linkedin
  • Blog
  • Careers
  • Demo
  • Login
Menu
  • Blog
  • Careers
  • Demo
  • Login
Resilic Logo
  • Solutions
    • EventWatchAI
    • RiskShield
      • Supplier Assessment Library
    • Multi-Tier Mapping
      • Resilinc’s Supplier Network
    • Autonomous AI Mapping
    • CommodityWatchAI
  • Industry
    • Aerospace and Defense
    • Automotive & Industrial
    • Healthcare & Life Sciences
    • High-Tech & Semiconductor
  • Pricing
  • Resources
    • Learning Center
    • Special Reports
    • Events
    • Developer API
  • Company
    • About
    • Partners
    • News
  • Contact
Menu
  • Solutions
    • EventWatchAI
    • RiskShield
      • Supplier Assessment Library
    • Multi-Tier Mapping
      • Resilinc’s Supplier Network
    • Autonomous AI Mapping
    • CommodityWatchAI
  • Industry
    • Aerospace and Defense
    • Automotive & Industrial
    • Healthcare & Life Sciences
    • High-Tech & Semiconductor
  • Pricing
  • Resources
    • Learning Center
    • Special Reports
    • Events
    • Developer API
  • Company
    • About
    • Partners
    • News
  • Contact
Resilic Logo
  • Solutions
    • EventWatchAI
    • RiskShield
      • Supplier Assessment Library
    • Multi-Tier Mapping
      • Resilinc’s Supplier Network
    • Autonomous AI Mapping
    • CommodityWatchAI
  • Industry
    • Aerospace and Defense
    • Automotive & Industrial
    • Healthcare & Life Sciences
    • High-Tech & Semiconductor
  • Pricing
  • Resources
    • Learning Center
    • Special Reports
    • Events
    • Developer API
  • Company
    • About
    • Partners
    • News
  • Contact
  • Blog
  • Careers
  • Demo
  • Login
  • Customer Hub
Menu
  • Solutions
    • EventWatchAI
    • RiskShield
      • Supplier Assessment Library
    • Multi-Tier Mapping
      • Resilinc’s Supplier Network
    • Autonomous AI Mapping
    • CommodityWatchAI
  • Industry
    • Aerospace and Defense
    • Automotive & Industrial
    • Healthcare & Life Sciences
    • High-Tech & Semiconductor
  • Pricing
  • Resources
    • Learning Center
    • Special Reports
    • Events
    • Developer API
  • Company
    • About
    • Partners
    • News
  • Contact
  • Blog
  • Careers
  • Demo
  • Login
  • Customer Hub
Facebook-f Twitter Linkedin
  • Blog
  • Careers
  • Demo
  • Login
Menu
  • Blog
  • Careers
  • Demo
  • Login
Resilic Logo
  • Solutions
    • EventWatchAI
    • RiskShield
      • Supplier Assessment Library
    • Multi-Tier Mapping
      • Resilinc’s Supplier Network
    • Autonomous AI Mapping
    • CommodityWatchAI
  • Industry
    • Aerospace and Defense
    • Automotive & Industrial
    • Healthcare & Life Sciences
    • High-Tech & Semiconductor
  • Pricing
  • Resources
    • Learning Center
    • Special Reports
    • Events
    • Developer API
  • Company
    • About
    • Partners
    • News
  • Contact
Menu
  • Solutions
    • EventWatchAI
    • RiskShield
      • Supplier Assessment Library
    • Multi-Tier Mapping
      • Resilinc’s Supplier Network
    • Autonomous AI Mapping
    • CommodityWatchAI
  • Industry
    • Aerospace and Defense
    • Automotive & Industrial
    • Healthcare & Life Sciences
    • High-Tech & Semiconductor
  • Pricing
  • Resources
    • Learning Center
    • Special Reports
    • Events
    • Developer API
  • Company
    • About
    • Partners
    • News
  • Contact
  • Solutions
    • EventWatchAI
    • RiskShield
      • Supplier Assessment Library
    • Multi-Tier Mapping
      • Resilinc’s Supplier Network
    • Autonomous AI Mapping
    • CommodityWatchAI
  • Industry
    • Aerospace and Defense
    • Automotive & Industrial
    • Healthcare & Life Sciences
    • High-Tech & Semiconductor
  • Pricing
  • Resources
    • Learning Center
    • Special Reports
    • Events
    • Developer API
  • Company
    • About
    • Partners
    • News
  • Contact
  • Blog
  • Careers
  • Demo
  • Login
  • Customer Hub

Home / Blogs / Automakers gain more control over their semiconductor supply chains with new sourcing strategies

Home / Automakers gain more control over their semiconductor supply chains with new sourcing strategies

RESILINC BLOGS
Resilinc-Blog-Auto-Chip-Storage

Automakers gain more control over their semiconductor supply chains with new sourcing strategies

Dec 07, 2021

Resilinc Editorial Team

Automotive Industry, Reshoring, Supplier Collaboration

Three of the world’s largest automotive manufacturers—Ford, GM, and Hyundai—have recently announced plans to gain more control over the semiconductor supply chains through partnering and vertical integration. Of the three companies, Ford and GM have announced specific plans, with each taking different approaches.  But all three—and likely other large automakers who are considering such sourcing strategies—share at least one common goal: to avoid the production cutbacks and lost revenues that have been caused by semiconductor shortages over the last year.

“The moves are the latest examples of how pandemic-related disruptions are prompting companies to exert greater control over their supply chains by moving production closer to home, or in some cases in-house,” reported The Wall Street Journal on Nov. 22. For automakers, who were hammered by semiconductor shortages, the shift in semiconductor sourcing strategy is part of unwinding “decisions made over decades to outsource key components to outside suppliers.”

GM announced that it is partnering with seven major firms in the semiconductor value chain: Qualcomm Technologies; STMicroelectronics; TSMC; Renesas Electronics; Onsemi; NXP Semiconductors; and Infineon Technologies. GM President Mark Reuss said the company will work with these partners to reduce the number of unique microcontroller units required in GM vehicles by 95%. “Under the strategy, hardware and software developers will draw from three families of chips,” designed and manufactured by GM and its partners, according to Automotive News.

GM expects semiconductor requirements in its vehicles to more than double over the next several years, driven by the company’s increasing production and sales of electric vehicles, autonomous vehicles and connected services for navigation, roadside assistance, in-vehicle apps, and other services.

Ford, on the other hand, aims to bring chip design and development in-house with the goals of both avoiding future shortages and improving vehicle features such as autonomous driving and battery energy management in electric cars. “We feel like we can really boost our product performance and our tech independence at the same time,” said Chuck Gray, Ford’s vice president of vehicle embedded software and controls.

Ford’s chips will be manufactured by Global Foundries, whose CEO Tom Caulfield called the deal “a key step forward in strengthening our cooperation and partnership with automakers.”

Ford’s announcement has evoked some skepticism about how quickly and successfully the company can build up its capacity to design integrated circuits in-house. “Building a serious chip-design operation will be far from a simple undertaking for Ford,” reported the Journal, noting that chip design is “a difficult discipline that typically takes companies years to master.” To build in-house design capabilities, Ford will have to compete for engineering talent with companies like Intel, Nvidia and “also deep-pocketed tech companies like Amazon Inc. and Apple Inc. that are increasingly designing chips in house.”

Subscriber comments on the Journal’s story included some interesting perspectives, with one commenter opining that Ford will be hampered in recruiting semiconductor engineers by its uncompetitive compensation structure and its reputation as “an old un-sexy company.” Another commenter agreed about Ford’s recruitment challenges but pointed out that chips needed in Ford vehicles “are not nearly as complex as the CPU chips Tesla designs.” He added that the automaker’s relatively simple design requirements for semiconductors make Global Foundries an appropriate partner because the firm “can’t manufacture chips anywhere near as complex as what TSMC and Samsung can do.”

Meanwhile, according to The Drive and Reuters, Hyundai’s plans have been announced in general terms only by COO Jose Munoz. “We want to be able to develop our own chips within the group, so we are a little bit less dependent in a potential situation like [the pandemic],” said Munoz. “This takes a lot of investment and time, but this is something we’re working on.”

Munoz indicated that chip development would likely be led by Hyundai Mobis, the company’s wholly owned parts supplier. “And while Munoz doesn’t explicitly state the automaker’s plans to mass-manufacture chips, the fact that much of this could be performed by its component [Hyundai Mobis] indicates that it’s likely,” reported The Drive.

 

Thumbnail - Russia Ukraine Crisis Impact on Semiconductors Raw Material

White Paper

Resilinc Special Report Russia and Ukraine War: Impact on Raw and Rare Earth Materials

Download Now

Recent Posts

4 Major Supply Chain Trends Q4 2022

What would happen if China invaded Taiwan?

China COVID crisis: Groundhog Day for SC managers

EV segment will likely depend on China for many years

EU inflation hits multiple manufacturing sectors

Resilient supply chains require a shift in procurement strategy

Adderall one of many drugs, medical supplies at risk

Resilinc study: fire risks grow while easy mitigations are often ignored

About Resilinc

We’re the world’s leading supply chain monitoring, mapping, and resiliency solution. Over 100k organizations partner with us to take their SCRM programs from reactive to resilient.
Request Demo

Recent Blogs

Loading...
A photograph of a port in Taiwan.
Jan 24, 2023
5 MIN READ
Resilinc Editorial Team

4 Major Supply Chain Trends Q4 2022

Supply chains across every industry had their ups, downs, and disruptions in 2022. From the...
Commodity management, Geopolitical, Supply Chain Disruptions
Resilinc’s Special Report: Will China Invade Taiwan For TSMC - Top Insights and Preventive Measures
Jan 17, 2023
4 MIN READ
Resilinc Editorial Team

What would happen if China invaded Ta...

One day in August 2022, a group of military and defense strategy experts gathered in...
Geopolitical
Resilinc’s Special Report: China's Latest Outbreak - Top Risks to Your Supply Chain
Jan 10, 2023
3 MIN READ
Resilinc Editorial Team

China COVID crisis: Groundhog Day for...

After managing a seemingly endless series of crises arising from the pandemic, supply chain managers...
Coronavirus, Supply Chain Disruptions
Read All Blogs

Who's in your supply chain?

Better visibility starts now

Email Now|Call Now|Chat Now

Receive our monthly NewsWatch digest

Subscribe
Resilinc Transparent Logo

Most Trusted, Cognitive Supply Chain Risk Management Platform

Solutions

Blog

Careers

Company

  • About
  • News
  • Events
Menu
  • About
  • News
  • Events

Resources

  • White Papers & Reports
  • Case Studies
  • On-Demand Webinars
Menu
  • White Papers & Reports
  • Case Studies
  • On-Demand Webinars

Follows Us

Facebook-f Twitter Linkedin

Sales: [email protected]
Support: [email protected]
Partnerships: [email protected]

Resilinc Transparent Logo

Most Trusted, Cognitive Supply Chain Risk Management Platform

Company

  • About
  • News
  • Events
Menu
  • About
  • News
  • Events

Resources

  • White Papers & Reports
  • Case Studies
  • On-Demand Webinars
Menu
  • White Papers & Reports
  • Case Studies
  • On-Demand Webinars
  • Solutions
  • Blog
  • Careers
Menu
  • Solutions
  • Blog
  • Careers

Follows Us

Facebook-f Twitter Linkedin

Sales: [email protected]
Support: [email protected]
Partnerships: [email protected]

© 2023 Resilinc Corporation. All rights reserved.

Data Security

Privacy Policy

Discover how the latest China COVID-19 crisis can derail your supply chain

Learn the latest supply chain bottlenecks that can be hurting you.

           Learn More