While we’re sure the vast majority of our readers think of Ponch and Jon when they hear the word ‘chips’, there’s no denying the world’s automakers would probably rather never hear the term again as it relates to car parts. After weathering a severe shortage of the things, BMW thinks it has a solution: Shacking up with a semiconductor manufacturer and a semiconductor foundry.
Seeking to ward of any future production calamities, BMW has signed a so-called ‘direct supply assurance agreement’ with high-tech microchip developer INOVA Semiconductors and GlobalFoundries. They’re apparently a manufacturer of semiconductors with good control over the chain from raw material to finished product. Suits at BMW say this agreement guarantees them a supply of several million microchips per year.
“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. Parsing the marketing double-speak, this means the company hopes to have a heckuva lot more control over its supply of chips in case the world’s stock gets turned on its head again like it did this year. BMW has indicated these particular chips will go in the upcoming iX model.
Across the country, many dealer lots have resembled deserted parking areas, devoid of new metal for their sales staff to sell. More than one friend in the business has told me if they had a dollar for every wiseacre customer who has strolled through the doors and blared “Where’s all your cars?”, they’d be able to pay cash for one themselves. Some of the more switched on managers and dealer principals have managed to snag enough used inventory to keep their stores hopping, accepting early in these proceedings that they’d be in the used car business for the foreseeable future. Those who didn’t, well – they’re in charge of the aforementioned empty lots.
Depending on the equipment options, every car contains umpteen squillion of these semiconductors, little electronic wonders which are essential for modern devices and features. They can serve various functions ranging from performing arithmetic and control tasks in computers, storing data, or even handling multiple tasks at the same time. Not all of them are essential to make a vehicle operable at its most basic level. Readers with long memories may recall GM built and shipped many pickup trucks without start/stop systems, not to mention the in-dial temperature displays vanished from more than a few vehicles as well. They even toyed with yanking heated seats but backpedaled on that decision after public outcry. Now, apparently, any GM rig equipped with heated seats but not the ability to activate them will have its chip fitted by a dealer when available.
While this deal is impressive, some basic math reveals the scope of an OEM’s problem. BMW says this agreement is good for ‘several million’ chips per year and later says each car could have ‘several thousand’ chips each. Assuming the numbers of 18 million chips per year and 2,000 chips per car, that’s still only enough for 9,000 vehicles. BMW Group is on track to shift well over 2 million vehicles this year across its BMW, MINI, and Rolls Royce brands. Hey, at least the share of electronic components in vehicles is likely to only increase further in the future.
[Image: BMW]
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“Depending on the equipment options, every car contains umpteen squillion of these semiconductors, little electronic wonders which are essential for modern devices and features.”
…or ya know design components to use fewer or shared chips.
“BMW thinks it has a solution: Shacking up with a semiconductor manufacturer and a semiconductor foundry.”
I thought BMW’s solution would be to shack up with a new design studio – one that has designers and artists with eyes and a sense of taste – and totally undo the gross abominations that adorn the fronts of some of their vehicles. Chips mean nothing if you don’t want to see something that reminds you of a Saturday morning cartoon buck-toothed beaver.
The wild thing is that my local BMW dealer doesn’t seem to be hurting for inventory and I’m not seeing many 2021+ models on the streets. Maybe buyers do have eyes and taste after all…
Or, perhaps Warby-Parker to fix our astigmatism. BMWs only look good in the dark.
Maybe the ugliness was a plot to avoid having to buy too many chips. As mentioned a few posts down – there is a reason old BMWs are going for good money: nobody wants this mess.
Crazy that it took this long to reach this conclusion. Nearly two years late
As a pre-2009 BMW fan, I was hoping that the chip shortage would force them to revert to old designs that required fewer chips.
Can’t be the only person who would be thrilled to see a modern update of an E38 and E39 with no screens. Don’t need adjustable suspension if it’s designed well out of the gate. Don’t need front facing cameras reading the road to enjoy a fun to drive car.
Some advances were great – ESC, ABS, airbags, even frontal collision warnings if calibrated correctly – but the rest has seemingly made us less attentive, more clumsy, less aware drivers.
Hey BMW (yeah, I’m using that stupid phrase), build us a slightly modernized early 2000s product. Look at the prices on BAT to understand there is demand for this.
Dear jkross22,
We don’t care anymore because we are a “mobility” company now.
XO
B.M.W.
Mobility? You mean subscription/SaaS company?
BMW should just get it over with and put a credit card chip reader on the driver door and another one next to the engine stop/start button.
Or will they be like any other SaaS, and make me scrutinize every charge that shows up on our monthly cc statement.
That gives me an idea. Disney/Pixar should do a mashup of CARS and Lady and the Tramp. They could cast BMW in the role of the beaver who frees lady from her muzzle and turns it into a log puller.
Now. What cars to cast in the lead roles? Perhaps a Hellcat as the Tramp? LC500 as Lady?
Discuss…
I like your thinking…
I read about this. The automakers are way behind on building custom chips that handle the whole job of the vehicle, and instead rely on zillions of cheap chips. The trend in the computer world – a chip that’s got everything on it, reducing the overall number of chips needed. Automakers are just starting into the job of doing this for automobiles.
That’s what BMW is doing here. It’ll be a bigger chip that does it all. Costs more to design, saves money down the road when made in quantity, and simplifies building the car. But the whole danged car winds up redesigned, which is generally a long, slow process.
Apple talks about its A13 Bionic chip in the iPhone. One day, GM will talk about the GM22 Ultra chip as a key feature of its cars.
What’s uglier the BMW in the top pic or the Toyota Tundra in the ad under it?
The BMW marginally wins the ugliest contest … The Tundra runs a close second !! ….In fairness I’d need to include the Silverado HD.
So, are bumpers illegal now?