Carmaker Stellantis (STLAM.MI) and iPhone assembler Foxconn (2317. TW) have formed a 50-50 joint venture to design and sell semiconductors for the auto industry from 2026. The new company, SiliconAuto, will supply Stellantis, including its new ‘STLA Brain’ electronic and software architecture, and 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,” the statement added. The companies did not give any financial details of the deal, which follows a preliminary agreement signed in December 2021. Foxconn, the world’s biggest contract manufacturer, is looking to diversify its revenue beyond the assembly of consumer electronics devices like smartphones and tablets. Its entry into the automotive industry could boost demand for chipmaking, which is also expected to increase due to automation and the switch to electric cars.
Foxconn and Stellantis have already partnered on another project to develop a platform for digital technologies across the group’s 14 car brands. That project, named Mobile Drive, is aimed at accelerating software development timelines and creating new HMI interfaces. The Netherlands-based JV will operate as an automotive supplier and bid to offer its technical platforms for use by other vehicle makers.
A 50-50 joint venture will allow both parties to benefit from a wide range of technological expertise, they said in the statement. The partners will collaborate on a family of state-of-the-art semiconductors that will be able to meet the diverse mobility needs around the world, they added. The semiconductors, manufactured by Foxconn’s Hon Hai Technology Group unit, will also be made available to third-party companies and can be integrated into third-party systems.
The joint venture will have an office in Shanghai, China, and a headquarters in the central Dutch city of Leiden. According to the statement, It will employ 150 people by 2023. It will work with companies involved in developing autonomous vehicles, including automotive suppliers and the electronics industry, as well as research institutes and universities.
It will also cooperate with the Chinese government to promote the development of the automotive industry, including electric vehicles. It said it would help establish a global supply chain for automotive digital technologies and encourage the growth of a local talent pool for those industries.
The partnership with Stellantis is the latest in a series of moves by Foxconn to expand its presence in the automotive industry, where demand for intelligent control technologies for internet-connected cars remains high. The Taiwanese electronics giant has forged relationships with carmakers to develop advanced driver-assistance systems and autonomous cars and recently teamed up with an automaker from the merger of Fiat Chrysler and Peugeot to make a radical MPV concept that showcased a vision of the future of premium transportation. The company is also working with BMW, Daimler, and Volkswagen to build a production facility for electric cars in China.
