Stellantis, Foxconn form 50-50 JV on semiconductors for auto industry
Reuters
Published Jun 20, 2023 08:45
MILAN (Reuters) - Carmaker Stellantis and iPhone assembler Foxconn (SS:601138) have created a 50-50 joint venture to design and sell semiconductors for the automotive industry from 2026.
The joint venture, called SiliconAuto, will supply Stellantis, including its new 'STLA Brain' electronic and software architecture, Foxconn and other customers, the two companies said in a statement.
"SiliconAuto will provide customers an auto industry-centric source of semiconductors for the growing number of computer-controlled features and modules, particularly those needed for electric vehicles," they said.
The deal, for which no financial details were provided, follows a preliminary agreement that Stellantis and Foxconn signed in December 2021 to partner in semiconductors for the automotive industry. Stellantis (LON:0QXR) owns a range of car brands including Fiat and Peugeot.
A key component in low emission and interconnected mobility, semiconductors have been at the centre of a prolonged global supply chain crunch in recent years.
"Stellantis will benefit from a robust supply of essential components, which is critical to fueling the rapid, software-defined transformation of our products," Stellantis Chief Technology Officer Ned Curic said.
SiliconAuto will be based in the Netherlands, where Stellantis is also headquartered, with a management team which includes executives from both partners.
Separately, Stellantis and Foxconn already have the Mobile Drive joint venture to develop in-car and connected-car technologies for the auto industry.
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Written By: Reuters
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