By Ed Frankl

Infineon Technologies AG said Monday that it had signed a nonbinding agreement with car maker Stellantis NV on the supply of semiconductors for electric vehicles.

The memorandum of agreement between the two companies is the first step toward a potential multi-year supply of silicon-carbide chips, Infineon said, which are widely used in the industrial and automotive industries.

The German chip maker said it would reserve manufacturing capacity and supply certain chips, branded CoolSiC, in the second half of this decade to direct suppliers of Stellantis.

The potential volume and capacity reservation is valued at significantly more than 1 billion euros ($1.04 billion), Infineon said.

Infineon and Stellantis are also in talks about delivering certain chips for electric vehicles under Stellantis brands, Infineon added.

Write to Ed Frankl at edward.frankl@dowjones.com

(END) Dow Jones Newswires

November 14, 2022 08:44 ET (13:44 GMT)

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