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Supply chain management


ZF SECURES DEVICE AND CHIP SUPPLY WITH STMICROELECTRICS AND WOLFSPEED

By Marcus Williams17 April 2023

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ZF has secured a contract with STMicroelectrics for the guaranteed supply of
silicon carbide devices in the “double-digit millions” beginning in 2025.

The German tier one supplier said STMicroelectrics will be supplying it
with metal oxide semiconductor field effect transistors (Mosfets) for use in
ZF’s modular inverters, which manage the flow of energy between battery and
motor in electric vehicles (EVs). ZF describes the module as “the brain of
electric drivetrains”. Silicon carbide devices provide higher efficiency, power
density and reliability, according to the company. MOSFET stands for 



STMicroelectrics will manufacture the silicon carbide transisitors at its
production fabs in Italy and Singapore, package them and then test them at its
back-end facilities in Morocco and China.

Stephan von Schuckmann, head of electromobility and materials management at ZF,
said the supply deal enabled it to strengthen its supply chain and secure the
supply of inverters for its OEM customers.

“Our order book in electromobility until 2030 now amounts to more than €30
billion,” he said. “For this volume, we need several reliable suppliers for
silicon carbide devices. In STMicroelectronics, we now have a supplier whose
experience with complex systems meets our requirements and who, above all, can
produce the devices in exceptionally high quality and at the required
quantities.”

The latest deal follows a similar one ZF signed with Wolfspeed for semiconductor
devices in February this year. As part of that strategic partnership, ZF and
Wolfspeed will set up an innovation lab together aimed at advancing silicon
carbide systems and devices for automotive, industrial and energy applications. 

ZF said it was also investing “hundreds of millions of dollars” in the
Wolfspeed’s 200mm silicon carbide device fab in Ensdorf, Germany, for which it
would receive common stock in the semiconductor provider, thereby securing
guaranteed supply of future devices.

“The close cooperation between fab and R&D centre will enable us to develop
breakthrough innovations beyond state-of-the-art for the benefit of our
customers,” said Schuckmann.

Gregg Lowe, president and CEO of Wolfspeed said the partnership “will lift
silicon carbide semiconductor technology to a new level of global impact,
supporting increased sustainability and efficiency efforts across a multitude of
industries”.

After two years of chronic shortages in the supply of semiconductors and similar
technology to the automotive industry, carmakers and tier suppliers are looking
for stronger and more direct relationships with the chip manufacturers and wafer
fabs.

GM recently signed a supply deal with semiconductor contract manufacturer for
the long-term guaranteed supply of semiconductors, establishing what it calls “a
dedicated capacity corridor exclusively for GM’s chip supply”.

Read the interview with Kamal Khouri, vice-president and general manager for
automotive at GlobalFoundries, who talks about the set up with GM and the
benefits of a more transparent supply chain.





TOPICS

 * Editor's pick
 * Electric vehicles
 * Inbound logistics
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 * OEMs
 * Semiconductors
 * Supply chain management
 * Tier suppliers
 * ZF

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