STMicroelectronics set to launch new electric vehicles chip production at its facility

MOROCCO – STMicroelectronics, a French-Italian multinational electronics and semiconductors manufacturer, is set to inaugurate a new electric vehicles (EV) chip production at its facility in Bouskoura, Morocco.

The plant will be dedicated to producing electronic chips for Tesla after STMicroelectronics won a contract with the American electric automaker. Initial production has already begun on the company’s existing lines. 

The announcement makes Morocco the first African country to fully venture into the emerging market of electric vehicle export. Globally, there has been a biting shortage of microchips: the Covid-19 pandemic increased demand for personal electronics, outstripping supply.

In addition, supply chain disruptions caused by the pandemic led many Asian based chip manufacturers to downsize operations. Thus, Morocco enters the chip market in hope of plugging an existing shortage.

“Chip production could become the catalyst for the establishment of Electric Vehicle manufacturing in Morocco.”

Prof. Michael Tanchum – Middle East Institute

“STMicroelectronics agreement with Tesla seems to be just the leading edge of a wave of EV chip production in Morocco that could provide a pathway to EV manufacturing in the North African nation,” wrote Prof. Michael Tanchum in a recent article for Middle East Institute.

“Through its new EV chip production line, Morocco will soon play a greater strategic role in securing Western Conductor supply chains. Given its proven track record as an automotive manufacturing hub, chip production could become the catalyst for the establishment of EV manufacturing in Morocco.”

The presence of Europe’s automotive giants – Groupe Renault and Groupe PSA (now Stellantis) – has successfully cemented Morocco’s position in global automotive exports. In fact, as of 2019, Morocco’s automotive industry sales accounted for 27.6 percent of the country’s exports.

These companies have attracted another 200 international suppliers operating their own local manufacturing plants. For instance, the American firm Lear operates 11 production sites in Morocco specializing in car electrical and seating systems.

In addition, the Chinese wheel manufacturer and aluminium supplier CITIC Dicastal has a US$400 million plant in Kenitra, where it supplies the nearby Groupe PSA industry.

Morocco’s economic transformation is founded on its vibrant port complex. Tanger Med is located at the confluence of major global shipping routes, and it has one of Africa’s most competitive business models.

Morocco’s entry into EV chip production thrusts the country into a booming market for EV vehicles, as witnessed in Europe and the United States.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.