MILAN (Reuters) - Automaker Stellantis and German chipmaker Infineon said on Thursday they would cooperate to further develop power architecture for the automaker's next generation vehicles.

The two companies said in a joint statement they signed supply and capacity agreements that will serve as a base for their cooperation.

These include Infineon's smart power switches, helping Stellantis ( STLA ) become one of the first automakers to implement intelligent power network management and silicon carbide (SiC) semiconductors, supporting the standardisation of power modules and the improvement of EV's performance and efficiency.

WHY IT'S IMPORTANT

Technology and software are increasingly key elements in vehicles as the industry moves towards electrification and interconnection, pushing automakers to seek stable supplies of innovative tech components, including semiconductors.

KEY QUOTES

"We are securing the supply of crucial semiconductor solutions required to continue our transition to an electrified future," Stellantis ( STLA ) Chief Purchasing and Supplier Quality Officer Maxime Picat said in a statement.

"Our semiconductors drive the decarbonization and digitalization of mobility. They increase the efficiency of cars and enable software-defined architectures," said Peter Schiefer, president of Infineon's Automotive division.

CONTEXT

A post-pandemic supply crunch, in particular a global shortage of semiconductors, severely slowed down automotive output in recent years, costing the industry millions of vehicles in terms of lost output.