Foxconn to Launch Electric Vehicle in 2023... Reducing Dependence on Apple

Foxconn Chairman Liu Yangwei "Factory Location to Be Decided Before July"
Wisconsin, USA Strongly Considered

[Image source=EPA Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Foxconn, the world's largest contract manufacturer producing Apple's iPhones, is reportedly considering producing electric vehicles at its factory in Wisconsin, USA, as early as 2023. This appears to be a concrete plan for Foxconn, which has grown through mass production of Apple iPhones, to transform into a comprehensive electronics company.

According to major foreign media on the 16th (local time), Foxconn Chairman Liu Yangwei revealed this during a meeting with reporters in Taipei. Chairman Liu said, "As smartphone profits decline, we have been considering entering the electric vehicle market," and added, "We will decide on the location of the electric vehicle production plant before July." The leading candidate for the electric vehicle production plant location is Wisconsin, USA. This is the first time Chairman Liu has directly mentioned the location of the electric vehicle plant.

However, Chairman Liu drew a line regarding reports that Foxconn would contract-produce the Apple Car, calling them "speculation." The industry has consistently speculated that since Foxconn produces more than 60% of Apple iPhones, the newly entered electric vehicle business would also cooperate with Apple.

The industry interprets this as an effort "to reduce dependence on Apple, which accounts for about half of Foxconn's sales."

The electric vehicles produced by Foxconn are not expected to be under an independent brand but will mainly focus on contract manufacturing. Although Chairman Liu did not disclose the suppliers, he hinted at contract manufacturing by stating, "We are currently in talks with American automobile manufacturers."

Earlier, Bloomberg reported that Foxconn signed a memorandum of understanding (MOU) with the US electric vehicle startup Fisker to jointly develop electric vehicles, with Foxconn producing them and selling under the Fisker brand. Chairman Liu also said they are in discussions to finalize a joint venture for electric vehicles with the European automaker Stellantis.

Foxconn has set a goal to capture 10% of the global electric vehicle production volume between 2025 and 2027.

Chairman Liu expressed confidence, saying, "The global automotive chip shortage is an opportunity for Foxconn to enter the automotive production supply chain," and added, "Automakers were unable to quickly respond to the rapid changes in demand caused by the COVID-19 pandemic, which will work to our advantage."

He also revealed plans to produce more than 250,000 electric vehicles annually and sell them in North America, Europe, China, India, and other regions.

Chairman Liu said, "China, Europe, and the United States will all be important electric vehicle markets," and added, "Especially Wisconsin is suitable as an electric vehicle production site because it is close to Detroit, Michigan, which is famous for the automotive industry."

This content was produced with the assistance of AI translation services.