Stellantis and the ripple effects of chip shortages
The automotive sector is navigating a persistent semiconductor crunch that intensified in 2023 and shows little sign of rapid relief. This shortage has touched Stellantis Vigo and many other carmakers, with predictions that the discussion will extend into the coming year as demand for chips rises in step with the broader shift toward electrification. Advanced power semiconductors, including silicon carbide devices, have been in especially high demand for electric vehicles, and supply tightness has highlighted the challenges suppliers face in keeping pace with soaring usage levels through 2023 and beyond.
Industry leaders have been candid about the constraints. A prominent executive with a leading United States chip maker noted that there is currently no quick fix for 2023, but capacity will be expanded on a quarterly and monthly cadence to satisfy growing demand. This stance mirrors warnings from other voices in the sector about a prolonged period of tight supply, particularly from European manufacturers that rely on key suppliers to support ramp-ups in EV production and other advanced applications. The leadership at various chip producing companies has underscored the need for balanced growth, as orders continue to outstrip available output in the near term.
Amid these dynamics, one European facility announced a substantial investment designed to bolster capacity. A multi‑billion‑euro project is planned to expand analog, mixed‑signal, and power semiconductor fabrication, with a focus on applications spanning automotive systems and industrial markets. The move signals a strategic push to diversify manufacturing footprints and create additional supply resilience in regions that include central Europe and beyond. In parallel, a major chip supplier has outlined expansion plans in the Czech Republic, South Korea, and North America, with expectations of a notable rise in overall capacity by the middle of the decade.
Stellantis and its influence
For Stellantis, the supply constraints are weighing on production schedules and profitability, even as the group continues to optimize its portfolio and manufacturing footprint. The chief executive officer of Stellantis has reiterated that semiconductor restrictions are a persistent factor shaping industry output. The outlook provided at a recent major automotive event emphasized that the current trajectory depends heavily on market demand, with analysts and executives alike noting that the situation at the end of 2023 may begin to ease if capacity and lead times improve more broadly. The sentiment reflects a cautious optimism about a potential inflection point later in the year, while recognizing that the pace of improvement will hinge on supplier performance as well as global demand patterns.
As carmakers like Stellantis plan for the next wave of vehicle electrification, the strategic question becomes how quickly the supply chain can scale to meet the needs of both traditional models and new electric offerings. Industry observers in Canada, the United States, and other North American markets are watching capacity announcements closely, interpreting them as signals about the reliability of chip availability for critical components such as power modules, on‑board chargers, and high‑voltage systems. The overarching message from executives remains clear: the path to stabilizing production rests on coordinated capacity expansion, rational allocation of scarce semiconductors, and strong demand signals that justify continued investment in advanced manufacturing.
In summary, the sector’s outlook in North America and Europe hinges on how quickly supply can catch up with demand. If the industry can sustain incremental capacity increases and reduce lead times, the shipments of new electrified models could accelerate in the second half of the decade. For now, the consensus is that the shortage will gradually ease, but not vanish overnight. Stakeholders across automaking and chip supply ecosystems continue to monitor capacity trajectories, market demand, and policy developments that could influence investment and deployment of next‑generation semiconductor technologies across vehicles and other high‑tech industries.