Stellantis (NYSE: STLA) and Hon Hai Technology Group, (Foxconn) have entered into a non-binding memorandum of understanding to design a family of purpose-built semiconductors for the automaker as well as third party customers. The agreement is anticipated to stabilize the global chip supply chain amid the ongoing semiconductor chip storage affecting automakers globally.
“Our software-defined transformation will be powered by great partners across industries and expertise,” said Carlos Tavares, Stellantis CEO. “With Foxconn, we aim to create four new families of chips that will cover over 80% of our semiconductor needs, helping to significantly modernize 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 agreement was announced at the 2021 Stellantis Software Day. Additionally, at the same event, the company unveiled STLA Brain, its new electrical/electronic and software architecture launching in 2024.
“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 experience developing semiconductors and applications within consumer electronics which will develop into the automotive segment “with the guidance and demand of a world-class mobility partner”.