The joint venture, called SiliconAuto, will supply Stellantis, including its new 'STLA Brain' electronic and software architecture, Foxconn and other customers, the two companies said in a statement.

"SiliconAuto will provide customers an auto industry-centric source of semiconductors for the growing number of computer-controlled features and modules, particularly those needed for electric vehicles," they said.

The deal, for which no financial details were provided, follows a preliminary agreement that Stellantis and Foxconn signed in December 2021 to partner in semiconductors for the automotive industry. Stellantis owns a range of car brands including Fiat and Peugeot.

A key component in low emission and interconnected mobility, semiconductors have been at the center of a prolonged global supply chain crunch in recent years.

"Stellantis will benefit from a robust supply of essential components, which is critical to fueling the rapid, software-defined transformation of our products," Stellantis Chief Technology Officer Ned Curic said.

SiliconAuto will be based in the Netherlands, whereStellantis is also headquartered, with a management team which includes executives from both partners.

Separately, Stellantis and Foxconn already have the Mobile Drive joint venture to develop in-car and connected-car technologies for the auto industry.