Foxconn sets up dedicated EV division
Foxconn Technology Group is accelerating its move into the automative sector with a newly created division: Foxconn New Energy Automobile Industry Development Co.
The Taiwanese company, formally called Hon Hai Precision Industry Co, has become the world's largest contract electronics manufacturer thanks to demand for smartphones and consumer gadgets. But now those two markets are flatlining. Indeed, last week Foxconn reported USD 198.9 billion in preliminary revenue for 2023, down 7 per cent from 2022.
Hence this new venture, which is located in Zhengzhou city, capital of central China's Henan province and home to the world's largest iPhone factory. This move into EV development is an logical one for Foxconn. It comes shortly after Xiaomi became the first phone maker to develop a car. Meanwhile Apple has long been rumoured to be preparing to enter the automotive space.
In fact Foxconn already is already active in the space. It has created a specialised EV supply chain, including chips and batteries, and acquired the former General Motor Co plant in Lordstown, Ohio. In 2021, it unveiled three electric vehicle prototypes made by Foxtron, a joint venture between Foxconn and Taiwanese car maker Yulon Motor Co Ltd.
And Foxconn has developed its own EV 'operating system,' which it calls Mobility in Harmony EV platform, or MIH. The idea is to give any partner the ability to develop a car quickly on top of the platform. In interviews, Foxconn has said it wants to embed its tech inside 5% of all electric vehicles made by 2025.
