PALO ALTO, SA – Electric vehicles are the “next big product” for Foxconn’s iPhone collector and are “very, very likely” to grow into a larger electronics business, said Chairman and CEO Young Liu .
Taiwanese group measures plans to roll out electric vehicles in China and the US, entering a fast-growing segment of the automotive market where technical players can compete with carriers -traditional manufactures.
“With EVs, we have a chance to compete with no more engines in the car,” Liu told Nikkei in a recent interview. “Without the engine, if you look at the key parts for the powder, the driver is a motor as well as a lot of semiconductor parts.”
Foxconn, which trades as Hon Hai Precision Industry, first unveiled plans to assemble electric vehicles for manufacturers last October. The company has set a goal to capture a 10% share of the global EV market between 2025 and 2027.
But the world’s largest contract electronics manufacturer has no plans to replicate the business model that worked for smartphones and other devices. That approach targeted factories in China and Taiwan, delivering electronics worldwide.
“We don’t expect the same kind of centralized production to work,” said Liu, who was in charge of Foxconn’s semifinal business before Terry Gou succeeded him as CEO in 2019. “We believe regional production or decentralized the way EVs. “
Foxconn Chairman and CEO Young Liu will address reporters in Taiwan on March 16th. © Reuters
“Automobiles are very large and difficult to dispose of,” he said. “Shipping costs are much higher than delivering a cell phone.”
Instead, Foxconn plans to manufacture motors in other key components in selected locations, including Taiwan. These parts will be shipped to vehicle collection hubs in other parts of the world.
Liu said it is likely that the first electric vehicle made by Foxconn will be assembled in China under the local startup brand Byton. Foxconn has informed Byton that supply will begin next year.
The next electric vehicle will be for Fisker, the U.S. brand, and is likely to be made in America, Liu said. On Tuesday, the Foxconn CEO told reporters that Mexico is also a candidate site for EV manufacturing.
Last fall, Foxconn unveiled its own open EV platform, Dubbed MIH, which it will provide to EV developers and retailers.
“With this open platform, we will be able to deliver 80% of the hardware,” Liu said.
The platform lowers the barrier to entry for new EV startups, as well as small to midsized companies. By expanding the scope of its EV business beyond assembly, Foxconn is looking to increase its opportunities to add value to the automated supply chain.
A Taiwanese group has shown it is open to working with outside partners in EVs, including Taiwanese automaker Yulon Motor. Foxconn plans to make MIH compatible with autonomous driving, and an area where it has partnered with Japanese startup Tier IV. Phase IV plays a key role in the development of an open source operating system for autonomous driving, known as Autoware.
Japanese manufacturers hold about 30% of the global automotive market share, but have focused much of their efforts on fuel-efficient gasoline engines, low emissions and trans-vehicles. kind of. Some see a worldwide shift towards electric vehicles as a threat.
Liu said he is aware of Japan’s automotive industry.
“For most of the traditional manufacturers, they look,” he said. “We believe once we start delivering specific MIH-based products, they will become more risky.”