Foxconn Drives Further Into Chipmaking With Stellantis Tie-Up
What’s new: Foxconn will team up with automaker Stellantis NV to design purpose-built automotive semiconductors, in the iPhone-assembler’s latest foray into the automotive space.
The two companies have signed a memorandum of understanding under which they aim to create four new families of chips that will meet more than 80% of Stellantis’ semiconductor needs, amid a global shortage of microchips, according to a joint statement published on Tuesday.
Installation of the chips in Stellantis vehicles is expected to start by 2024, the statement said, adding that they will also be made available to third-party customers.
The two partners did not disclose the financial terms of the deal.
The background: Tuesday’s announcement comes as Stellantis redoubles efforts to develop new software platforms for its vehicles that support wireless updates and provide various in-car subscription services.
In August, Foxconn and Stellantis signed a deal to establish a joint venture called Mobile Drive, which will aim to make smart cockpit systems for cars featuring navigation, voice assistance and payment services.
Foxconn has a history of developing semiconductors and applications for consumer electronics. The semiconductors produced under the partnership will be part of Foxconn’s electric vehicle (EV) ecosystem, thereby extending the company’s competency in EV manufacturing.
Quick Takes are condensed versions of China-related stories for fast news you can use.
Contact reporter Ding Yi (email@example.com) and editor Bertrand Teo (firstname.lastname@example.org)
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