BMW Group Signs Agreement with Inova Semiconductor and GlobalFoundries to Secure Supply

Munich -- Deember 8, 2021. 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 signed a direct supply assurance agreement with high-tech microchip developer INOVA Semiconductors and semiconductor manufacturer GlobalFoundries® (GF®). 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,” said 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 proactive manner going forward.”

This agreement is a model of how to build more secure, and resilient supply-chain partnerships and accelerate technology development supporting the next generation of automotive innovation.

"With this agreement directly with an OEM, we are certainly entering new territory as a semiconductor company" says Robert Kraus, CEO of INOVA Semiconductors. "We are convinced that this innovative approach of a partnership across the production chain will be target-oriented: in this way, we secure the requirements of our end customer and have a high degree of planning security with the long production cycles of the chips. That is a real win-win situation."

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

Several thousand semiconductors per car

Depending on the equipment options, every car contains several thousand of the wafer-thin 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.

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The BMW Group

With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW Group is the world’s leading premium manufacturer of automobiles and motorcycles and also provides premium financial and mobility services. The BMW Group production network comprises 31 production and assembly facilities in 15 countries; the company has a global sales network in more than 140 countries.

In 2020, the BMW Group sold over 2.3 million passenger vehicles and more than 169,000 motorcycles worldwide. The profit before tax in the financial year 2020 was € 5.222 billion on revenues amounting to € 98.990 billion. As of 31 December 2020, the BMW Group had a workforce of 120,726 employees.

The success of the BMW Group has always been based on long-term thinking and responsible action. The company set its course for the future early on and is making sustainability and resource efficiency the focus of the company’s strategic direction – from the supply chain, through production, to the end of the use phase, for all its products.