Yahoo Finance Stellantis (STLA) & Foxconn Sign MoU for Flexible Semiconductors
Stellantis N.V. STLA has collaborated with Hon Hai Technology Group (“Foxconn”) to design a family of purpose-built semiconductors to support its own and third-party customers.
The partnership announcement was part of the Stellantis Software Day 2021 event. The company introduced STLA Brain, the new electrical/electronic and software architecture, which will be launched in 2024 across its four battery electric vehicle-centric platforms, namely, STLA Small, Medium, Large and Frame. The fully Over-the-Air (OTA) feature makes STLA Brain highly flexible and efficient.
The joint venture will aid in Stellantis’ initiatives to reduce semiconductor complexity and design an all-new family of purpose-built semiconductors to support its vehicles as they are increasingly becoming software-defined.
The deal is likely to be fruitful as it will leverage Foxconn’s domain expertise, capabilities and the existing supply chain in the semiconductor industry, and Stellantis’ broad automotive expertise and scale.
Stellantis stated that through the joint venture, it aims to create four new families of chips that will cover more than 80% of its semiconductor needs, thereby uplifting the semiconductor chain and bringing in rapid innovation.
Foxconn is equally enthusiastic about the partnership as it is confident of its experience in manufacturing semiconductors and software and Stellantis’ know-how. Its current semiconductors will expand to the automotive space and be utilized within the Foxconn EV ecosystem as the company continues to extend its capabilities in electric vehicle manufacturing.
The recent announcement marks the second collaborative work between Stellantis and Foxconn. Previously, in May this year, the companies started the Mobile Drive joint venture to develop smart cockpit solutions through advanced consumer electronics, HMI interfaces and services expected to exceed customer expectations.
Shares of Stellantis have climbed 15.9% over a year, outperforming the industry’s 5.8% rise.
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Zacks Rank & Other Key Picks
Stellantis currently carries a Zacks Rank #1 (Strong Buy).
Other top-ranked peers in the same space include Goodyear GT, flaunting a Zacks Rank #1 and Genuine Parts GPC and Dorman Products DORM, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Goodyear has an expected earnings growth rate of 197% for the current year. The Zacks Consensus Estimate for earnings for the current year has been revised 77% upward over the last 60 days.
Goodyear beat the Zacks Consensus Estimate for earnings in all the four trailing quarters. The company pulled off a trailing four-quarter earnings surprise of roughly 228.5%, on average. Its shares have also gained around 125.1% over a year.
Genuine Parts has an expected earnings growth rate of 27.3% for the current year. The Zacks Consensus Estimate for the current year has been revised around 5% upward over the past 60 days.
Genuine Parts beat the Zacks Consensus Estimate for earnings in all the four trailing quarters. The company delivered a trailing four-quarter earnings surprise of roughly 16%, on average. Its shares have rallied around 36.5% over a year.
Dorman has an expected earnings growth rate of 36% for the current year. The Zacks Consensus Estimate for the current year has been revised 2% upward over the past 60 days.
Dorman beat the Zacks Consensus Estimate for earnings in all the four trailing quarters. The company pulled off a trailing four-quarter earnings surprise of roughly 10.41%, on average. Its shares have also rallied around 23.9% over a year.
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