- Foxconn make bold plans to enter the EV market
- Taiwan’s position in the middle of US-China tensions puts Foxconn in a challenging spot.
- Foxconn aims to capture 5% of the global EV market, emphasizing regionalized production and leveraging their expertise.
Amid international tensions, tech-manufacturing giant, Foxconn, sets its sights on the EV market
Foxconn is betting big on electric vehicles (EVs) and restructuring its supply chains amid strained US-China relations. In an exclusive interview, Chairman Young Liu shared his vision for the Taiwanese firm’s future. He firmly believes that EVs will drive Foxconn’s growth in the coming years.
Foxconn, also known as Hon Hai Technology Group, is a renowned technology powerhouse. It manufactures products for Apple, Microsoft, Sony, Dell, and Amazon. Their success is rooted in a proven playbook: design in the US, manufacture in China, and sell globally. However, this approach is being tested as US-China tensions strain supply chains, with Taiwan caught in the middle.
Taiwan has long been a contentious international issue. While China seeks reunification, the US, under President Biden, openly supports Taiwan. This puts Foxconn in a challenging position as it navigates relationships with both superpowers.
Despite geopolitical tensions, Foxconn hasn’t seen major impacts on its business yet. However, the “de-risking” trend, reducing reliance on China, may influence decisions in the future. Clients may choose to relocate production based on government directives.
“We think this is a great opportunity for us because with EVs, it’s batteries and motors,” Liu explained, emphasizing the familiarity and expertise Foxconn has gained through manufacturing electronic products like iPhones. The company aims to capture about 5% of the global electric vehicle market in the next few years.
Looking ahead, Foxconn sees electric vehicles as a significant opportunity. Leveraging its technology and manufacturing expertise. They plan to establish car factories in Ohio, Thailand, Indonesia, and potentially India.
“It doesn’t make sense for you to make [EVs] in one place, so regionalized production for cars is very natural,” Liu stated
Diversifying production and supply lines, including entering the EV sector, is vital for Foxconn’s future growth.
Foxconn is placing a major bet on EVs amidst supply chain restructuring and US-China tensions. They believe in the growth potential of EVs, leveraging their expertise to secure their future.