From iPhone to electric car: Foxconn aims to become the largest car manufacturer

Foxconn, the world’s largest contract electronics maker, earlier this week signaled plans for customers to sell electric vehicles on a large scale, produced in Taiwan, Thailand and the United States, and possibly also in the future in India and Indonesia. The ambition is part of the Taiwanese company’s plans to boost its electric vehicle business to help it diversify its role in assembling consumer devices such as iPhones for Apple and other tech companies.

At the company’s annual technology day, President Liu Young-way explained that with an industry alliance known as the Mobility in Harmony platform, Foxconn is “opening up the closed-loop nature of traditional technology manufacturing. half design times and reduce production costs by a third. “Foxconn is not in the business of selling its own brand of electric vehicles, but we want our customers to sell a lot of electric cars,” Liu said.

It’s a way to attract more investors, as the tech company’s shares have lost 28% in markets since the start of the year. With this long-term objective in mind, the management team intends to diversify its lines of business to recover from the current onslaught in the equity markets. “The expansion of its networks can serve as a guarantee for the future and for more players to enter its capital,” analysts at Atlantic Capital said in a note.

In recent years, the company has expanded into other areas, including electric vehicles and semiconductors, announcing deals with US start-up Fisker and Indian conglomerate Vedanta. She did so at a time when trade relations between the United States and China are not looking good due to the conflict with Taiwan.

The three prototypes unveiled last year – an SUV, a sedan and a bus – will be “gradually” produced in Taiwan, Thailand and the United States, and Foxconn is currently in talks with partners in Indonesia and India, Mr. .Liu. “We sincerely hope that Taiwan can seize this rare century-old business opportunity for electric vehicles,” he said.

Its auto plant in Ohio, the first in the United States, will have a production capacity of 500,000 to 600,000 cars a year, said the company’s CEO. The Thai factory will produce up to 200,000 vehicles a year in about two years, according to the company. Taiwanese production will mainly be centered at Yulon Motor’s Miaoli plant.

“For our electric vehicle business… production is mainly done overseas in different countries,” Liu said. “We will hire most of the staff for our new electric vehicle business locally, where the production bases are. Currently, we do not have any production related to electric vehicles in China,” he said.

Foxconn prototypes revealed last year

Expansion to electric vehicles

Foxconn reiterated its goal of capturing 5% of the global EV market, a revenue contribution of T$1 trillion, by 2025. Mr. Liu. Foxconn has around 40-45% market share in manufacturing ICT devices, including computers, telephones, networking products and servers.

The technology company has entered into agreements with several global partners to develop its activities in the field of electric vehicles, in particular with the Indonesian mining company Indika Energy for the manufacture of batteries and electric buses, as well as with the Thai public company PTT for the local construction of electric vehicles. Foxconn has also partnered with Stellantis, the world’s fourth-largest automotive group and owner of Fiat, to develop semiconductors and smart cockpits. It also started producing test chips in silicon carbide, a semiconductor essential for electric vehicles. Mass production of chips is planned for the second half of next year.

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