Under the crisis of lack of core, BMW can no longer afford to form an alliance with chip suppliers to ensure the first delivery of the latest electric vehicles.

Under the crisis of lack of core, BMW chose to form a direct alliance with semiconductor manufacturers. German carmaker BMW Group announced on Wednesday that it had signed chip supply agreements with German chipmaker INOVA Semiconductor and US chipmaker GE Core, according to foreign media reports. Under the agreement, INOVA and GE Core guarantee to supply BMW with millions of chips each year.

These chips will be given priority in BMW's new flagship model, the SAV (luxury sports utility vehicle) "iX". Some of the chips will be used to develop and produce on-board lighting system chips, that is, the ISELED intelligent LED technology jointly developed by BMW Group and other manufacturers, which will also be equipped on the BMW iX for the first time.

BMW said the agreement, which would ensure the first delivery of the BMW iX and long-term supply of semiconductors, was a classic example of a commitment to build more flexible supply chain partnerships, restore the balance between supply and demand for chips in the automotive industry, and further accelerate technological innovation.

"We are deepening partnerships with suppliers at key points in our supplier network and working directly with chipmakers and developers on Synchronize our capacity planning, which improves the reliability and transparency of the supply chain and ensures our long-term needs," said AndreasWendt, a member of the BMW AG management committee and responsible for procurement and supplier networks. "this groundbreaking agreement marks a more proactive approach to maintaining supply chain security."

In addition to chip supply agreements with INOVA and GF, BMW signed an agreement with Qualcomm in November that Qualcomm will supply BMW with chips for self-driving cars.

Behind these moves is BMW's innovation of its traditional supply model: trying to go beyond first-tier suppliers and connect directly with second-tier suppliers and other channels to ensure the supply of key components such as chips.

As an established automaker, BMW is not on a whim. The wave of electrification and intelligence of cars forces it to take measures.

In the era of fuel trucks, the importance of chips is far less than the core components such as engines, gearboxes and chassis. Car companies will not directly contact the chip foundry, but directly place orders with the first-tier core suppliers (Tier1). Tier1 occupies a relatively dominant position in the supply chain of the whole industry. This supply chain model helps to enhance the efficiency advantage of the whole vehicle factory and reduce the cost of capital.

However, in the era of intelligent electric vehicles, the three-electric system has replaced the traditional three major parts to become the core of automobile power, a variety of new technologies continue to emerge, the iterative cycle of new cars is accelerated, the product technology is becoming more and more complex, and the demand for automotive chips is increasing. This requires the automobile industry chain to have the ability to respond quickly, and the traditional vehicle manufacturers begin to re-examine the relationship with the parts enterprises, especially the chip as a key component.

The shutdown crisis caused by lack of core further exposed the disadvantages of the original supply chain model and played a role in reshaping the automobile supply chain. Teng ran, general manager of Sadie Consulting Integrated Circuit Industry Research Center, previously said that in the traditional supply chain management model, due to the long intermediate chain, when downstream demand fluctuates, the upstream chip factory's response lags behind, and the bullwhip effect is significant, thus magnifying the demand gap of vehicle manufacturers' chips.

At present, both new and old car-making forces are seeking to flatten the supply chain, and the previous statements of a number of car factories and chip factories have confirmed this trend. Geely Automobile official said: "at present, the company is establishing a direct communication channel with chip suppliers." An insider at the head of a domestic car-building force also said: "in order to help the company's first-tier suppliers, the company's management will even directly help dock with the second-tier suppliers." Su Linlin, vice president of Ziguang Guoxin Microelectronics Co., Ltd., said, "in the past, we took the initiative to talk to Tier1 about supply, but this year, many people have come to us."