Stellantis, Foxconn Form Joint Venture To Develop Chips Aimed At Automotive Industry

Stellantis NV STLA and Hon Hai Technology Group (Foxconn) has formed a joint venture SiliconAuto to tailor chips aimed at the new generation of automotive industry vehicle platforms, starting in 2026.

This is the product of an agreement between the parties on December 2021 to develop a family of semiconductors for automotive applications.

The 50/50 joint venture combines Foxconn's development capabilities and domain expertise in the ICT industry with Stellantis' understanding of diverse mobility needs worldwide. 

Also Read: Stellantis Invests In 11 Sustainable Mobility Ventures - What's On The Cards? 

SiliconAuto will provide customers with an auto industry-centric source of semiconductors for the growing number of computer-controlled features and modules, especially for electric vehicles.

The products will also support STLA Brain, Stellantis' new electrical/electronic and software architecture.

SiliconAuto will be headquartered in the Netherlands and include executives from both founding partners.

"Stellantis will benefit from a robust supply of essential components, which is critical to fueling the rapid, software-defined transformation of our products," said Stellantis chief technology officer Ned Curic.

Also Read: Stellantis, Galloo Plan Joint Venture For End-Of-Life Vehicle Recycling

Price Action: STLA shares are trading lower by 2.83% at $16.85 in premarket on the last check Tuesday.