TAIPEI (Taiwan News) — The Foxconn Technology Group (Foxconn) said Tuesday (June 20) it was forming a 50-50 joint venture with French-Italian car group Stellantis N.V. to produce automotive chips.

Stellantis is the result of the merger between France’s PSA and Italy’s FCA, and produces cars under a variety of brand names, including Peugeot, Opel, Citroen, Fiat, Maserati, and Chrysler. While Foxconn is the world’s largest contract maker of Apple Inc. products, the group is now also concentrating on the development of electric vehicles (EVs).

The new joint venture, to be known as SiliconAuto, will start producing a new generation of semiconductors for the car industry in 2026, CNA reported. The chips will be sold to a range of customers, including Stellantis, to meet growing demand resulting from the manufacturing of EVs, according to Foxconn.

The two companies will appoint a joint management team for SiliconAuto, which will be based in the Netherlands, where Stellantis also has its official headquarters. Foxconn and Stellantis first announced a strategic partnership in 2021, and later formed the MobileDrive venture to develop infotainment, telematics, and cloud services.