These Guys Will Help Stellantis Combat Chip Shortage

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Addressing the global chip shortage is a top priority.

At this rate, we'll have to start referring to Foxconn as a major automotive industry player first and an iPhone maker second. The Taiwanese technology giant is well-known for manufacturing the popular iPhone but has made multiple headlines in the automotive industry this year for everything from its partnership with Fisker to the launch of its own range of electric vehicles.

Foxconn's next big move is a partnership with Stellantis to design and sell flexible semiconductors for the automotive industry. One of the partnership's goals will be to avoid the severe shortage of chips that crippled the industry in 2021.

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The signing of a non-binding memorandum was announced today as part of the Stellantis Software Day 2021. At this event, Stellantis also shared its plans for the introduction of new software architecture across its lineup in the coming years, which will be critical to the conglomerate remaining competitive in the future.

"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," said Stellantis CEO Carlos Tavares. "This will also boost our ability to innovate faster and build products and services at a rapid pace."

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The Stellantis-Foxconn partnership is perhaps not a surprise as other automakers have already begun looking for ways to mitigate the chip shortage and prevent the same thing from happening again. Both GM and Ford have already started partnering with various chip manufacturers after the ongoing shortage forced GM to suspend Super Cruise from being equipped in the 2022 Cadillac Escalade and kept Ford from completing F-150s.

Foxconn has developed semiconductors in the consumer electronics space for a long time, allowing Stellantis to leverage the iPhone maker's expertise in this area. The partnership continues a relationship that began in May when Stellantis and Foxconn announced a Mobile Drive joint venture. Adoption and installation of the new chips are expected by 2024 with Stellantis' new STLA Brain architecture.

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