Stellantis and Foxconn Combat Chip Shortage
The semiconductor chip shortage has rocked the auto industry. Nearly every industry, from consumer electronics to large machines, has felt the impact caused by the shortage. The fallout of 2020 didn’t end with COVID-19, but during quarantine and lockdowns, consumer shopping went up. Amazon probably quintupled its revenue, and with the increased demand for consumer goods, many companies shifted their resources toward those brands and manufacturers. Now the pendulum is swinging back, and many automakers have to modify the features available in select models and for some, entire lineups. In combating this, Stellantis recently announced the signing of a non-binding memorandum between Stellantis and Hon Hai Technology Group to form a partnership to produce purpose-built semiconductors to support Stellantis and third-party clients.
What is Foxconn?
Stellantis is also collaborating with Foxconn to further this aim. The company is associated with many consumer goods and brands, used by companies worldwide. Cooperating with Foxconn is a wise strategic move considering its domain know-how, development capabilities, and supply chain in the semiconductor industry – approximately 40 percent of all consumer electronics globally are manufactured by Foxconn. That covers a wide range, from smartphones to gaming consoles and CPUs. In this joint venture with Stellantis, the two are developing a new infotainment system by integrating telecommunications and computer systems, artificial intelligence-based applications, 5G communications, e-commerce channels, and smart cockpits.
“As a leading global technology company, Foxconn has the depth of experience in manufacturing semiconductors and software – two key components in the production of electric vehicles. We look forward to sharing this expertise with Stellantis and together tackle the long-term supply chain shortages, as we continue with the expansion into the electric vehicle market.”
-Young Liu, Chairman & CEO of Foxconn Technology Group
A New Era of Automotive Technology
The new endeavor between Stellantis and Hon Hai Technology Group was announced earlier during the Stellantis Software Day 2021 event on December 7, 2021. Stellantis displayed what’s in store for the automotive group over the next several years, with three all-new AI-powered technology platforms set to arrive in new models by 2024. During the event, Stellantis unveiled a new electrical/electronic and software architecture to underpin all of Stellantis’ four battery electric vehicle-centric platforms in 2024. The new STLA Brain architecture will be used with STLA Small, Medium, Large, and Frame platforms. Fully Over-the-Air (OTA) capable, the software can be updated for better performance, making it highly flexible and efficient.
Key upcoming electric vehicles from Stellantis include:
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Jeep BEV: An all-electric Jeep SUV, following its success with 4xe models
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Ram 1500 BEV: An electric pickup truck to complement the earlier announcement of a BEV Ram ProMaster
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Dodge eMuscle: A high-performance electric muscle car
Stay Tuned for Stellantis’s Latest Innovations at Aventura Chrysler Jeep Dodge Ram!
This alliance between Stellantis, Foxconn, and Hon Hai Technology will fuel these efforts. Follow us on social media to find out what happens next for Stellantis.