Stellantis And Foxconn Form SiliconAuto Joint Venture For Automotive Semiconductors

Auto giant Stellantis and tech firm Foxconn have announced the establishment of a 50-50 joint venture named SiliconAuto. This partnership aims to design and distribute semiconductors specifically for the automotive industry starting from 2026. Both companies disclosed that SiliconAuto will supply semiconductors to Stellantis, including its latest 'STLA Brain' electronic and software architecture, as well as to Foxconn and other clients.

The creation of SiliconAuto addresses the Increasing demand for computer-controlled features and modules, particularly in electric vehicles. By providing a source of semiconductors tailored to the automotive sector, this collaboration seeks to cater to the industry’s specific requirements.

The financial terms of the partnership were not disclosed. However, this collaboration builds upon the preliminary agreement signed between Stellantis and Foxconn in December 2021 to cooperate in the semiconductor domain for the automotive industry.

Semiconductors play a crucial role in low-emission and interconnected mobility, making them a vital component in the automotive industry. However, the global supply chain for semiconductors has faced challenges in recent years, leading to shortages.

“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 headquartered in the Netherlands, the same location as Stellantis. The management team of the joint venture will consist of executives from both Stellantis and Foxconn. Additionally, Stellantis and Foxconn already operate the Mobile Drive joint venture, which focuses on developing in-car and connected-car technologies for the automotive industry.