Stellantis' Latest Deal With Foxconn May Be Their Path Out of Chip Shortage

Stellantis 6 photos
Photo: Stellantis
If the ongoing health crisis was a mild irritant for the auto industry, the global microchip shortage was a blood-gushing gut wound. With no end game in sight for the global microchip supply shortage, we were all left to wonder if this really was the grim reaper for the industry.
Now, months into the shortage, the Chinese microchip producer Foxconn and the multinational auto firm Stellantis are ready to provide at least a touch more support to their own chip supply than a few months ago. It started on December 7th with the signing of a memorandum to create a partnership "With the intent to design a family of purpose-built semiconductors to support Stellantis and third-party customers."

One of the world's largest semiconductor manufacturers, Foxconn has had business relationships with tech and auto sector companies like Apple, Samsung, and Stellantis. With its latest corporate deals, Stellantis hopes to satisfy at least 80% of its estimated microchip supply for the foreseeable future.

Some might find the most interesting aspect about Stellantis' verbiage when unveiling their new partnership to be the "family of semiconductors," supposedly agreed to by both parties. These new chips will likely satisfy multiple roles like infotainment/navigation operations or more essential things like ECU and other vital computerized engine components.

Meanwhile, other global supply chain shortages of essential materials like magnesium have begun to fall into short supply due to the worldwide health crisis and the inability to meet demand during the lockdowns that resulted from the said crisis. With these recent business dealings, Stellantis hopes that the worst of the chip shortage may soon be at an end. As it stands, it's going to take more than a few signatures on the dotted line to finally see supply shortages in the rearview mirror, and what a wonderful thing that would be to see.
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