PARIS -- Stellantis and Foxconn have signed a memorandum of understanding to co-design a family of dedicated microcontrollers that will eventually cover 80 per cent of Stellantis’ needs, the companies said.
The partnership is especially critical as automakers grapple with a persistent shortage of semiconductors that control almost every function in today’s highly advanced cars.
The shortfall has cost automakers millions of vehicles in lost production, led to automakers prioritizing some models at the expanse of others, and even building cars without certain options. It is not expected to ease until 2022.
The tie-up "will help drive stability in Stellantis’ global semiconductor supply chain," the automaker said in a news release on Tuesday as it presented its new software strategy.
The companies did not divulge financial terms of the deal.