Apple’s ‘intrinsic partner’ has an ambition to make $ 30 billion from electric cars even though it doesn’t sell any cars

Tram Ho

At an annual technology day event held in Taipei, Foxconn – Apple’s manufacturing partner – unveiled two new electric vehicle prototypes, the Model B crossover sport utility vehicle and the Model V pickup truck. Last year, Foxconn also introduced three electric vehicle prototypes. Foxconn hopes to capture a 5% share of the global electric vehicle market by 2025, with sales of around NT$1 trillion ($31 billion).

Foxconn CEO Liu Young-way told reporters: “Hopefully we can make the same achievements in the electric vehicle market as we do in information and communication technology.”

Mr. Liu’s statement shows Foxconn’s great ambition when focusing on promoting new manufacturing industries. The world’s largest contract electronics manufacturer currently holds 40-45% market share in the world information and communication technology market, especially in personal computers and mobile phones. .

When asked when the number of electric vehicles produced by Foxconn will surpass Tesla, Liu said he hopes one day Foxconn will outsource electric vehicle production to Tesla itself.

'Đối tác ruột' của Apple nuôi tham vọng kiếm 30 tỷ USD từ xe điện dù không mảy may bán bất kỳ chiếc xe nào - Ảnh 1.

Foxconn’s Model B crossover.

Foxconn has not revealed which electric vehicle models will be sold to consumers, but so far only reference designs, aimed at demonstrating the company’s ability to potential customers who are big brands. The Model C prototype previously introduced by Foxconn is now a Luxgen n7-branded electric car from Taiwanese automaker Yulon Group.

Foxconn reiterated that the group will stick to contract design and manufacturing services, rather than compete with automakers or electric vehicle brands.

Foxconn will aim to outsource EV production to customers based on its platform chassis and has no plans to sell electric vehicles under its own brand. Foxconn likens the chassis to “open source”, with customizable elements including size, wheelbase, suspension model and battery size. Car manufacturers can customize these elements to their needs, and Foxconn will assemble it for them.

Foxconn hopes to repeat its success in electric vehicles in the same way it used its electronics assembly line strength to become the biggest manufacturing partner for Apple and other global brands.

Last year, Foxconn generated $215 billion in revenue from assembling and manufacturing components for smartphones, PCs and other electronic products, from game consoles to industrial robots.

'Đối tác ruột' của Apple nuôi tham vọng kiếm 30 tỷ USD từ xe điện dù không mảy may bán bất kỳ chiếc xe nào - Ảnh 2.

Foxconn’s Model V pickup truck.

Foxconn began developing the electric vehicle business in 2019. A year later, the group formed an alliance with suppliers to develop the software and hardware platform used in vehicle design and manufacturing. electricity.

The group also quickly established partnerships with automakers and electric vehicle startups. In 2020, Foxconn established a joint venture to design and develop electric vehicle Foxtron Vehicle Technologies with Yulon Group. After that, this group bought a factory of Lordstown Motors in Ohio state to set up a production base in the US and signed a contract to produce electric pickup trucks for Lordstown Motors.

Additionally, Foxconn has signed a manufacturing agreement with California-based electric vehicle startup Fisker. Foxconn has also tightened a partnership with European-American automotive group Stellantis to jointly develop smart cockpit solutions for electric vehicles. The two sides are also planning to cooperate in the development of automotive chips.

Demand for electric vehicles is on the rise as consumers and governments increasingly support this clean mobility technology, driving dramatic worldwide change to industry and technology. Foxconn is trying to enter an already crowded field with rivals ranging from US Tesla to China’s Nio, BYD and Xpeng. Even smartphone company Xiaomi also plans to produce smart electric cars.

If Foxconn succeeds with this ambition, electric cars could be the area to change the corporation. Foxconn’s production of traditional information technology products is currently concentrated in China and has only been gradually diversifying into Southeast Asia and India in recent times. However, Mr. Liu said Foxconn’s electric vehicle production business is entirely outside of China. This is absolutely a great opportunity for Southeast Asian countries, because Foxconn is investing in more factories in these countries, especially Vietnam.

References: FT, Bloomberg

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Source : Genk