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Stellantis and Foxconn Announce Joint Venture for Automotive Semiconductors

Title: Stellantis and Foxconn Establish Joint Venture, SiliconAuto, for Automotive Semiconductors

Date: June 20, 2023

Author: Mario Cianflone

A new joint venture called SiliconAuto has been announced by Stellantis, the automotive group, and Foxconn, the Taiwanese electronics giant. The partnership aims to design and sell a family of semiconductors specifically for the automotive industry, with a focus on providing automotive-grade components for electric vehicles. The joint venture is set to begin its operations in 2026.

SiliconAuto will play a crucial role in addressing the increasing demand for semiconductors in the automotive sector. These semiconductors are essential for operating computer-controlled modules and functions, particularly in electric vehicles. By supplying explicitly automotive-grade semiconductors, SiliconAuto aims to meet the future needs of Stellantis, Foxconn, and other customers in the automotive industry.

It is important to note that SiliconAuto is not a chip manufacturer itself. Instead, it will develop semiconductors and have them produced by specialists with expertise in silicon foundries. This approach allows SiliconAuto to leverage the capabilities of established chip manufacturers while focusing on the design and sale of automotive-specific semiconductors.

The establishment of SiliconAuto further strengthens the partnership between Stellantis and Foxconn. In addition to this joint venture, the two companies have also formed the Mobile Drive joint venture, which focuses on developing smart cockpits through consumer electronics, human-machine interfaces, and services. Mobile Drive aims to provide next-generation instrument clusters, infotainment systems, and digital interfaces for connected vehicles.

Stellantis has been actively investing in digital technologies, and the company has previously announced three platforms: Stla Brain, Stla Cockpit, and Stla Drive. These platforms serve as the digital equivalents of the mechanical platforms for the group’s future electric cars. Stla Brain is the central digital vehicle control system, Stla Cockpit handles the user interface and infotainment, and Stla Drive focuses on automated driving.

The partnership between Stellantis and Foxconn, through SiliconAuto and Mobile Drive, demonstrates their commitment to advancing automotive technology and meeting the evolving needs of the industry. By collaborating on semiconductor development and smart cockpit solutions, the joint ventures aim to enhance the driving experience and connectivity in modern cars.

For more information, please refer to the original article by Mario Cianflone on ilsole24ore.com. [Link: https://www.ilsole24ore.com/art/nasce-siliconauto-joint-venture-i-chip-stellantis-e-foxconn-AEpB2nlD]
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why is there a shortage of semiconductors for cars

D other automotive manufacturers in terms of efficient and reliable components for their vehicles.

The establishment of SiliconAuto comes at a time when the global automotive industry is facing a significant shortage of semiconductors, causing production delays and impacting vehicle manufacturing worldwide. With the increasing electrification of vehicles and the integration of advanced technologies, the demand for semiconductors in the automotive sector has surged. This joint venture between Stellantis and Foxconn aims to address this shortage and ensure a stable supply of semiconductors tailored to the unique requirements of automotive applications.

The partnership between Stellantis and Foxconn brings together the automotive expertise of Stellantis, one of the world’s largest automotive groups, and the manufacturing capabilities of Foxconn, a leading electronics manufacturer. This collaboration will leverage the strengths of both companies to develop and produce cutting-edge automotive semiconductors that meet the highest quality standards.

SiliconAuto will focus on designing and developing semiconductors that are specifically optimized for automotive applications, such as power management, vehicle connectivity, and autonomous driving systems. By tailoring these semiconductors for automotive use, SiliconAuto aims to enhance the performance, reliability, and efficiency of vehicles, ultimately improving the overall driving experience for consumers.

The joint venture’s operations are expected to commence in 2026, allowing sufficient time for research, development, and production setup. Both Stellantis and Foxconn are committed to investing significant resources in SiliconAuto to ensure its success and to meet the growing demand for automotive semiconductors.

In conclusion, the establishment of the SiliconAuto joint venture between Stellantis and Foxconn represents a strategic alliance to address the shortage of automotive semiconductors. This partnership aims to design, develop, and sell semiconductors that are specifically tailored for automotive applications, with a focus on electric vehicles. By leveraging the strengths of both companies, SiliconAuto will play a crucial role in ensuring a stable supply of high-quality semiconductors, ultimately enhancing the performance and efficiency of future vehicles.

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