Stellantis and Hon Hai Technology Group (Foxconn) have announced a new 50/50 joint venture, SiliconAuto, which will design and produce semiconductors for the auto industry. The new venture plans to start producing chips in 2026.
Even before COVID, automakers were hit with semiconductor shortages due to a poorly engineered state electrical system, which resulted in unexpected power outages at a major semiconductor plant. The auto industry is expected to continue to be increasingly reliant on electronics.
Stellantis did not provide any information on where the joint venture’s factory will be, but the company itself will be headquartered in the Netherlands and Foxconn has at least one unused facility in the United States. The company will have executives from both Stellantis and Foxconn, and Stellantis will provide input on its needs for future vehicles.