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Foxconn, Stellantis form joint venture to make car chips

Credit: Pixabay/CC0 Public Domain

Taiwan's tech giant Foxconn and US-European carmaker Stellantis announced Tuesday that they have set up a joint venture to design and sell high-end automotive chips.

SiliconAuto will be headquartered in the Netherlands with sales estimated to start in 2026, the firms said in a statement, without providing financial details.

"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 ," the statement said.

Semiconductors, which power everything from smartphones to toys to hypersonic missiles, became scarce during the coronavirus pandemic as factories shut but demand for electronics surged.

Tech companies, including Foxconn, have increasingly looked to shift manufacturing away from China after strict COVID policies, a bout of industrial unrest and ongoing diplomatic tensions with the United States hurt production.

Stellantis, the world's third-largest automaker by revenue, said last month that the easing global shortage of semiconductor supplies helped drive sales in the first quarter.

Stellantis's electric vehicle sales jumped 22 percent year-on-year in the January-March period, and the group aims to have 47 all-electric models by the end of next year.

Foxconn—officially Hon Hai Precision Industry—is the world's biggest contract electronics manufacturer and a principal assembler of Apple's iPhones.

Foxconn Chief Product Officer Jerry Hsiao said the new collaborative venture with Stellantis would see "a future of extraordinary EV mobility".

© 2023 AFP

Citation: Foxconn, Stellantis form joint venture to make car chips (2023, June 20) retrieved 17 May 2024 from
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