Taiwan’s Foxconn eyes EV manufacturing in India, Europe

Highlights

  • The company will “indirectly” collaborate with German firms in the EV venture. India would be the second destination after Europe, followed by Latin America, most likely Mexico.

  • In August, it had purchased a semiconductor factory in Taiwan to secure chip supplies for its car production.

  • The company aims to provide components or services to 10% of the world’s EVs by 2025 as part of its plans to diversify revenue streams.

Taiwanese tech giant Foxconn is planning to manufacture electric vehicles in India, Europe, and Latin America with “indirect” collaboration with German automakers, the company said on Wednesday.

Foxconn, formally called Hon Hai Precision Industry, plans to foray into the global EV market in a big way. It has signed agreements with American electric vehicle startup Fisker and Thailand’s energy firm PTT PCL to boost its EV strategy.

On Wednesday, Chairman Liu Young-Way revealed Foxconn’s EV manufacturing plans to reporters at a business forum in Taipei but did not reveal more details, citing disclosure restrictions. Liu had unveiled three EV prototypes on Monday, Reuters reported.

The Foxconn chairman, though, hinted at jumpstarting the project in Europe first.

He said the company would “indirectly” collaborate with German firms in its EV venture. India would be the second destination followed by Latin America, most likely in Mexico, Liu added.

Mexico has been on its radar as a potential location for EV production.

Liu also had earlier mentioned Mexico as a likely manufacturing destination.

Foxconn’s EV Business Model

Liu said Foxconn’s business model will be based on its build, operate, and localise framework or BOL.

The strategy focuses on operating factories in host countries through joint investments and selling products locally.

In May this year, Foxconn had announced plans to create a joint venture in partnership with the Netherlands based automaker Stellantis N.V. to supply in-car and connected-car technologies for the vehicle industry.

Foxconn, founded in 1990 and headquartered in New Taipei, trades on the Taiwan Stock Exchange under the symbol TW.

Source: Pixabay

Foxconn Acquisitions

Early this month, Foxconn purchased a plant from US startup Lordstown Motors to make EVs.

In August, it had purchased a semiconductor factory in Taiwan to secure chip supplies for its car production. The company aims to provide components or services to 10% of the world’s EVs by 2025 as part of its plans to diversify revenue streams.

Foxconn is a contract iPhone maker for Apple.

Foxconn Technology Co Ltd., founded in 1990 and headquartered in New Taipei, trades on the Taiwan Stock Exchange under the symbol TW. It has a market cap of around US$96 billion.

Liu said Foxconn would have a natural edge in EV production because of its software and semiconductor development strength.

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