Apple iPhone Assembler Foxconn Wants to Supply the Components for 10% of the World's EVs

resource from: Reuters   

Taiwanese contract manufacturer Foxconn is probably best known as the company that assembles many of computer giant Apple's flashy tech products, including the iPhone and iPad. Apple sold over 217 million iPhones in 2018 alone and Foxconn assembled all of them since it was introduced in 2007. 

The company also assembles popular electronics sold by Microsoft, Amazon and Sony, making Foxconn world's biggest contract manufacturer. Now the company is aiming to assemble electric vehicle components by the millions.

Foxconn announced on Friday that it aims to provide components or services to around 10% of the world's electric vehicles (EVs) between 2025 and 2027. Foxconn Chairman Liu Young-way said his company has been in talks with multiple car manufacturers for future cooperation.

The Taiwanese contract manufacturer, whose formal name is "Hon Hai Precision Industry Co Ltd", is looking at growth from sectors such as electric vehicles, digital health and robots in a push to diversify its global investments.

"We want to push Taiwan's EV industry to the world," Liu said in Taipei on Friday.

In January, Foxconn announced its plan to develop electric vehicles with Fiat Chrysler Automobiles, as the company seeks new areas for growth to combat the slowing sales of smartphones, which are beginning to plateau.

Fiat Chrysler will hold 50% of the venture, and Foxconn will hold no larger than a 40% stake, the Taiwanese company said.

"Our initial plan is to manufacture in China for the local market first," with exports possible later, Foxconn said, adding that the venture will also focus on the "internet of vehicles."

China is the world's biggest marker for EVs.

Japanese news outlet news outlet Nikkei Asia Review reported earlier this year that the operation of Foxconn's EV business will be handled mainly by group subsidiaries FIT Hon Teng, which makes automobile components, and FIH Mobile, Foxconn's Android smartphone assembly arm. FIH Mobile will provide software solutions for automotive systems in electric cars, the company said.

Foxconn has pledged to build an "open platform" to make key EV components including battery packs and car-internet services to automobile makers.

"Hon Hai has to ready our open platform as soon as possible. We need to move fast to grab market share," he said.

Foxconn plans to work with multiple automakers to reach the goal of 10% global EVs, Liu added, representing around three million vehicles.

Foxconn is planning to launch a solid-state battery for electric vehicles in 2024, which improves on current lithium-ion batteries that are usually found in EVs. Becoming an EV battery supplier to the auto industry could help Foxconn to diversify its business.

Liu has said earlier this year that Foxconn was working to build supply chains in China and the United States, amid a years-long drive to diversify its investments around the world.

resource from: Reuters

FutureCar Staff