Dive Brief:
- Stellantis is forming a joint venture, dubbed SiliconAuto, with electronics manufacturer Foxconn to design and market semiconductors for its own line of vehicles and the rest of the auto industry, according to a press release.
- The semiconductors produced by SiliconAuto will support future software-based electric vehicles that Stellantis plans to introduce.
- The joint venture announcement follows a December 2021 agreement between the two companies to develop advanced chips for automotive applications.
Dive Insight:
After the recent global semiconductor supply chain disruptions that severely impacted the auto industry, Stellantis is working to ensure it will have the advanced chips required for the next generation of EVs. It’s also hoping to capitalize on the auto industry’s growing demand for a stable supply of chips.
SiliconAuto will leverage Foxconn’s manufacturing expertise with Stellantis’ proficiency in producing vehicles at scale. The semiconductors will support a growing fleet of software-based EVs with an increasing number of control modules and computer-controlled functions.
“Stellantis will benefit from a robust supply of essential components, which is critical to fueling the rapid, software-defined transformation of our products,” Stellantis Chief Technology Officer Ned Curic said in a press release.
Stellantis is aiming to become a mobility tech company. Starting in 2024, the automaker will launch four new global vehicle architectures. These future EVs will be more like smartphones and support regular over-the-air updates. The technology will allow customers to add new features and services and keep their vehicles up-to-date with the latest software regardless of which year it was produced.
In addition to the new semiconductor joint venture, Foxconn and Stellantis collaborated on the STLA SmartCockpit as part of their Mobile Drive joint venture, which was announced in May 2021.
The STLA SmartCockpit offers occupants a more natural way of interacting with Stellantis vehicles using touch, voice, glance and gesture controls. In addition, the SmartCockpit will incorporate AI-based applications and immersive graphics using augmented reality technology to deliver turn-by-turn navigation, voice assistance, payment services and an e-commerce marketplace, among other features and services.
In December 2021, Stellantis said it planned to invest nearly $30 billion in electrification and vehicle software through 2025. The automaker expects the number of software-based connected vehicles on the road will reach 34 million by 2030.
Stellantis is targeting approximately $4 billion in annual revenues by 2026 and roughly $20 billion by 2030, with revenue generated by software-based product offerings and vehicle subscription options.
The SiliconAuto joint venture will be headquartered in the Netherlands with a management team of executives from both Foxconn and Stellantis.
Foxconn is best known as Apple’s contract manufacturer, assembling tens of millions of products for the computer giant. The company was established in 1974 and has grown to become the world’s largest electronics manufacturer, with revenue of roughly $220 billion in 2022, according to the press release.
