Stellantis to build its semiconductors together with Foxconn

December 07, 2021 // By Christoph Hammerschmidt
Stellantis to build its semiconductors together with Foxconn
Car manufacturer Stellantis and Hon Hai Technology Group (aka Foxconn) have announced a memorandum of understanding to form a partnership. The aim is to jointly develop a family of specially designed semiconductors for use in cars. The chips will not only be available to Stellantis, but will also be marketed to third-party customers.

Together with Foxconn, Stellantis plans to develop four chip families, explained Stellantis CEO Carlos Tavares. These building blocks will be tailored in a way that they cover more than 80% of the carmaker's demand cases. "They will help us significantly modernise our components, reduce complexity and simplify the supply chain," Tavares said. "This will also improve our ability to innovate faster and develop products and services at a rapid pace."

The partnership was announced at Stellantis Software Day 2021, where the company unveiled its new STLA Brain electrical/electronic and software architecture. It is scheduled for launch in 2024 on Stellantis' four battery electric platforms - STLA Small, Medium, Large and Frame. STLA Brain is fully OTA ("Over the Air") enabled, making it highly flexible and efficient.

"As a global technology company, Foxconn has extensive experience in manufacturing semiconductors and software," explained Young Liu, Chairman & CEO of Foxconn Technology Group. These are two key components in the production of electric vehicles, he said. At the same time, the Foxconn boss announced that the company will continue its expansion into the electric vehicle market.

The collaboration will support Stellantis' initiative to reduce semiconductor complexity, develop an entirely new family of purpose-built semiconductors for Stellantis vehicles, and expand capabilities and flexibility in this area, which is becoming increasingly important as vehicles become more software-defined. With this measure, Stellantis is following the example of its major competitor Ford Motors, which had also recently announced the development of its own semiconductors – in this case, together with Globalfoundries. Above all this, Tesla's strategy hovers as a guiding star: the electric carmaker has long developed the semiconductor components needed for its vehicles itself and has them produced by contract manufacturers.

Foxconn has a long tradition in the development of semiconductors and applications in consumer electronics. This tradition is now to be

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