Stellantis and Foxconn Announce Joint Venture for Automotive Semiconductors
Stellantis, one of the world’s leading automotive manufacturers, has partnered with Hon Hai Technology Group, also known as Foxconn, to establish a joint venture dedicated to designing, producing, and selling semiconductors for the automotive industry. The new company, named SiliconAuto, will focus on creating advanced computer-controlled features for modern cars, including electric vehicles (EVs). This collaboration aims to provide a steady supply of essential components to fuel the rapid transformation of Stellantis’ products.
The partnership between Stellantis and Foxconn will enable the production of semiconductors that power various features in vehicles. These chips are responsible for operating advanced technologies and software architecture, including over-the-air updating capabilities. SiliconAuto plans to start providing these chips in 2026, initially catering to Stellantis, Foxconn, and other companies. STLA Brain, Stellantis’ electrical/electronic and software architecture division, will also benefit from this joint venture.
Ned Curic, the Chief Technology Officer of Stellantis, expressed his excitement about the collaboration, stating that the company aims to build vehicles that seamlessly connect with customers’ daily lives and deliver exceptional capabilities even after leaving the assembly line. Curic believes that the joint venture with Foxconn will enable the creation of purpose-built innovations through an efficient partnership.
SiliconAuto will be headquartered in the Netherlands and will have a management team comprising executives from both Stellantis and Foxconn. The agreement between the two companies was initially reached in December 2021, with the goal of developing a family of semiconductors specifically designed for automotive use.
Jerry Hsiao, the Chief Product Officer of Foxconn, shared his optimism about the joint venture’s potential impact on EV mobility. Hsiao believes that SiliconAuto’s vertical integration capabilities and resources will contribute to the success of their partners, making them more competitive in the market.
Stellantis has set ambitious goals for the electrified era, investing over €30 billion in global electrification efforts. The company aims to have 50% of the passenger and light-duty trucks it sells in the U.S. be all-electric by 2030. On a global scale, Stellantis plans to sell five million battery electric vehicles (BEVs) in 2030 alone. Additionally, the company is committed to reducing its carbon emissions by 50% by the same year.
The collaboration between Stellantis and Foxconn comes at a crucial time when the automotive industry is facing a global semiconductor shortage. This shortage has significantly impacted vehicle production worldwide, causing delays and disruptions. By establishing SiliconAuto, Stellantis and Foxconn aim to secure a robust supply of semiconductors, ensuring a steady flow of essential components for their vehicles.
The joint venture’s focus on designing and producing semiconductors specifically for automotive use demonstrates the companies’ commitment to advancing technology in the industry. As vehicles become increasingly reliant on advanced computer-controlled features, such as autonomous driving and connectivity, the demand for high-quality semiconductors will continue to rise.
In conclusion, Stellantis and Foxconn’s joint venture, SiliconAuto, marks an important collaboration in the automotive industry. By combining their expertise, resources, and vertical integration capabilities, the two companies aim to develop and produce cutting-edge semiconductors for modern vehicles. This partnership will not only benefit Stellantis and Foxconn but also other companies in need of reliable semiconductor solutions. As the world transitions towards electrification and advanced automotive technologies, SiliconAuto’s contributions will play a crucial role in shaping the future of mobility.