Stellantis and Foxconn partnering on automotive semiconductor business
Will sell the chips to other automakers
Stellantis and Foxconn will co-develop a new line of automotive semiconductor chips partly aimed at improving future supplies of the critical component, the companies announced Tuesday.
"With Foxconn, we aim to create four new families of chips that will cover over 80% of our semiconductor needs, helping to significantly modernize our components, reduce complexity, and simplify the supply chain. This will also boost our ability to innovate faster and build products and services at a rapid pace," Stellantis CEO Carlos Tavares said.
The chips will be made available to third-party customers and will enter production by 2024. Details on planned investments and manufacturing locations were not immediately released.
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Stellantis is developing the chips to help it integrate new software platforms for its vehicles that will allow for over-the-air updates and provide a variety of in-car subscription services, on demand features and fleet operations data that it expects to be worth $4.5 billion in annual revenue by 2026 and $22.5 billion by 2030 across its 14 brands, which include Dodge, Jeep, and Peugeot.
The collaboration is one of several recent moves Foxconn has made into the automotive sector, including the launch of its own electric car platform and the purchase of the former Lordstown Motors factory in Ohio, where it plans to produce vehicles designed by American startup Fisker.