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Stellantis and Foxconn have signed a memorandum of understanding to design and sell new flexible semiconductors. 

The two companies will sell these purpose-built semiconductors to other firms within the automotive industry as well as Stellantis itself.

The non-binding agreement will “leverage Foxconn’s domain know-how, development capabilities, and supply chain in the semiconductor industry, as well as Stellantis’ expansive automotive expertise and significant scale as a lead customer for the enterprise,” according to a press release. 

Given the ongoing chip shortage, this new partnership between Taiwan-based Foxconn and Amsterdam-based Stellantis might give the company’s the run on their rivals. 

“Our software-defined transformation will be powered by great partners across industries and expertise,” says Carlos Tavares, Stellantis CEO.

“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.”

While this new MoU was announced at Stellantis Software Day, it isn’t the first time that the two companies have worked together. Back in May, Stellantis and Foxconn announced plans to develop digital cockpits and other in-car connected technology. 

“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,” says Young Liu, Chairman & CEO of Foxconn Technology Group.

“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.”

Stellantis is hoping that these new chips will be less complex than existing semiconductors and support its new “STLA Brain” technology. The Brain is a new electrical and software architecture designed for Stellantis’ our battery electric vehicle platforms.

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