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      12-08-2021, 03:22 AM   #1
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BMW Group signs direct agreement with chip suppliers to secure supplies

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Some good news on the semiconductor supply issues.

Quote:
+++ Trilateral agreement with high-tech microchip manufacturer INOVA Semiconductors and feature-rich semiconductor foundry Globalfoundries +++ Will secure several million semiconductors per year +++ First deliveries for BMW iX +++ Wendt: “Securing our semiconductor supply for the long term” +++

Munich. The BMW Group is exploring new ways of working with suppliers and, in the case of strategically important components, becoming more closely involved in the supplier network. To secure semiconductor supplies for the long term, the company has concluded a direct 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 microchips will be used in the ISELED smart LED technology co-developed by the BMW Group, which will be deployed for the first time in the BMW iX and rolled out in further models. Customer deliveries of the BMW iX 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. 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.”

This agreement is an example of the commitment to build a more resilient supply chain partnership approach to regain supply-demand balance for chips in the automotive industry as well as efforts to further accelerate technology innovation.

“This agreement directly with an OEM certainly marks new territory for us as a semiconductor manufacturer,” says Robert Kraus, CEO of INOVA Semiconductors. “But we firmly believe this innovative approach to partnership throughout the production chain will help us achieve our objectives: In this way, we can secure supplies for our end customers and ensure high planning reliability throughout the long chip production cycles. It’s a real win-win.”

“Globalfoundries is committed to building stronger relationships with the automotive industry to deliver innovation and address the growing demand for feature-rich chips,” says Mike Hogan, senior vice president and general manager of Automotive, Industrial and Multi-market at Globalfoundries. “This agreement with the BMW Group and INOVA demonstrates how the companies are partnering to develop innovative smart LED technology for the new BMW iX and to develop new technologies for the car of tomorrow.”

Several thousand semiconductors per car

Depending on the equipment options, every car contains several thousand of semiconductors that are essential for all electronic devices. They serve various functions by performing arithmetic and control tasks in computers, storing data or even handling multiple tasks at the same time. The share of electronic components in vehicles is likely to increase further in the future.
Source: https://www.press.bmwgroup.com/globa...ecure-supplies
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      12-08-2021, 08:40 AM   #2
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Good! I hope the situation gets resolved very soon.
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      12-08-2021, 08:45 AM   #3
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Yay for the iX...
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      12-08-2021, 08:57 AM   #4
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Now BMW needs to secure better designers.
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      12-08-2021, 08:59 AM   #5
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Quote:
Originally Posted by paul223 View Post
Now BMW needs to secure better designers.
No lies told
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      12-08-2021, 09:05 AM   #6
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So, LED technology is covered — for a car we cannot yet buy in the USA.
What about chips for lumbar, wireless charging, HUD, touch-screen, soft-close doors, H/K sound, and all the other missing options today?
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      12-08-2021, 09:16 AM   #7
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Quote:
Originally Posted by paul223 View Post
Now BMW needs to secure better designers.
Oh, c'mmon the designers aren't too bad, change the monkeys who hired them instead


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Originally Posted by BMWCCA1 View Post
So, LED technology is covered — for a car we cannot yet buy in the USA.
What about chips for lumbar, wireless charging, HUD, touch-screen, soft-close doors, H/K sound, and all the other missing options today?
Can one chip not do all that? Ok, I'll be generous, how about two?
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      12-08-2021, 09:48 AM   #8
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love this!
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      12-08-2021, 09:57 AM   #9
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Secure them for the M3 & M4
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      12-08-2021, 10:04 AM   #10
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I don’t know if that affects me, but we ordered our M5 in July (in Europe) and got production time to October. In early October, it was postponed to January 2022 (because of Bowers & Wilkins)... I hope we get it next year...
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      12-08-2021, 10:04 AM   #11
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Seems more like securing semi-conductors for a certain part of the car rather than in general. The focus for this was the iX and the newer infotainment setup that isn't available with the rest of the line up.
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      12-08-2021, 10:41 AM   #12
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Welcome to 1995 BMW! They should re-title this press release something like "BMW figures out the importance of semiconductor supply chain strategic planning 2 years after Covid-19 hit, and 25 years after Apple pioneered the practice". Compared to tech companies, I think it's embarrassing how naive the auto industry has been about semiconductors. Idiots!
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      12-08-2021, 10:52 AM   #13
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Quote:
Originally Posted by TheBingoBalls View Post
Seems more like securing semi-conductors for a certain part of the car rather than in general. The focus for this was the iX and the newer infotainment setup that isn't available with the rest of the line up.
Inova develops chips for communications within the car and infotainment. This deal will only secure those types of chips.
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      12-08-2021, 10:54 AM   #14
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Quote:
Originally Posted by skier219 View Post
Welcome to 1995 BMW! They should re-title this press release something like "BMW figures out the importance of semiconductor supply chain strategic planning 2 years after Covid-19 hit, and 25 years after Apple pioneered the practice". Compared to tech companies, I think it's embarrassing how naive the auto industry has been about semiconductors. Idiots!
Outside of Toyota, all the auto manufacturers cancelled their orders in 2020, anticipating low demand. Well, that didn't happen and fabs told them to go to the end of the line when they demanded they fill those cancelled orders. So, they all shot themselves in the foot.
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      12-08-2021, 10:57 AM   #15
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Quote:
Originally Posted by paul223 View Post
Now BMW needs to secure better designers.
Maybe they will hire you bro. You can go tell them how stupid they are and that you could significantly improve their sales for them if they just design cars the way you like them. You can let them know that their current record sales have zero reflection about how people actually feel about their new designs and that they are only buying BMW cars because they have to, not because they actually like them. Let me know how that works out for you.
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      12-08-2021, 11:33 AM   #16
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This is great news for the company.
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      12-08-2021, 12:31 PM   #17
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Hopefully this means more i4 allocations for next MY
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      12-09-2021, 05:16 PM   #18
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Quote:
Originally Posted by Patton250 View Post
Maybe they will hire you bro. You can go tell them how stupid they are and that you could significantly improve their sales for them if they just design cars the way you like them. You can let them know that their current record sales have zero reflection about how people actually feel about their new designs and that they are only buying BMW cars because they have to, not because they actually like them. Let me know how that works out for you.
Right? Bmw builds cars for people who buy them new. Not people who buy them as the 3rd owner.
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      12-10-2021, 10:21 PM   #19
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Great!

This is great news!

Can you ask them to send my RAM chip? My car is in the VPC.

Thanks.
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