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December 7, 2021updated 08 Dec 2021 3:53pm

Stellantis and Foxconn form chip JV

Four chips will cover 80% of automaker's needs.

By Graeme Roberts

Stellantis and Hon Hai Technology Group, (Foxconn) have signed a non-binding memorandum of understanding to create a partnership to design a family of purpose-built semiconductors for the automaker and third-party customers.

Carlos Tavares, Stellantis CEO, said: “We aim to create four new families of chips that will cover over 80% of our semiconductor needs, helping to significantly modernise our components, reduce complexity, and simplify the supply chain. This will also boost our ability to innovate faster and build products and services at a rapid pace.”

The deal was announced as part of a software day event where the automaker unveiled STLA Brain, the new electrical/electronic and software architecture launching in 2024 across Stellantis’ four battery electric vehicle platforms – STLA small, medium, large and frame. STLA Brain is fully OTA capable, making it highly flexible and efficient.

“As a leading global technology company, Foxconn has the depth of experience in manufacturing semiconductors and software – two key components in the production of electric vehicles. We look forward to sharing this expertise with Stellantis and together tackle the long-term supply chain shortages, as we continue with the expansion into the electric vehicle market,” said Young Liu, chairman & CEO of Foxconn Technology Group.

Foxconn has a long history of developing semiconductors and applications within consumer electronics which will expand to the automotive segment “with the guidance and demand of a world-class mobility partner”.

The semiconductors will also be used by Foxconn for its own EVs.

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Last May, the two companies announced the Mobile Drive joint venture developing smart cockpits.

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