Foxconn Technology (Hon Hai) is well prepared to leverage its software and semiconductor prowess to turn out more EVs with high performance and intelligence in 2022/2023, and will move to promote localized production in different regions to strengthen sales competitiveness in regional markets, according to company chairman Young-way Liu.
Foxconn unveiled three new EVs - Model C sport utility vehicle (SUV), Model E flagship luxury sedan and Model T electric bus developed by Foxtron, a joint venture between Hon Hai Group and Yulon Motor - at the October 18 annual Hon Hai Tech Day.
At the event, Liu said that both the Model C and Model E will initially be sold under Yulon's affiliated Luxgen and China Motor brands after hitting the market in 2022 at the earliest. He stressed that sales growth momentum for the EVs will pick up in 2023 and the EV business will generate NT$1 trillion (US$36 billion) in sales for Foxconn in five years.
Liu noted that sound software, semiconductor and hardware architectures will be Foxconn's major advantages in securing competitive EV production. He disclosed that in strengthening its deployment in software development, Foxconn will set up a software R&D centers to be staffed by at least 2,500 software engineers including 1,000 high-level R&D staff to be recruited within three years, seeking to build its own software ecosystem.
Liu went on to say that Foxconn will promote localized and regionalized production of EVs to boost their sales competitiveness in regional markets, disclosing that its Model T electric bus, ranging from initial design to final assembly, has been totally done in Taiwan, with 50% of components also sourced from local suppliers.
Liu indicated Foxconn will plan to build regional production bases in North America, South America, the Middle East, India, Southeast Asia, South Asia, Northeast Asia, and China to serve customers in the respective regions.
Foxconn is actively promoting its MIH open platform for EV development to serve as the "Android of the EV industry" to help more partners from diverse segments penetrate the global EV market, with more than 1,680 companies having joined the platform as of the end of June, including suppliers of ICT chips, power ICs, automotive diodes, MOSFETs, and SiC components, according to industry sources.
The chip vendors are expected to add significant support to Foxconn's EV production through the MIH platform, especially now that the EMS leader has acquired a 6-inch wafer fab in northern Taiwan to be dedicated to production of SiC components and infrared sensors for EV applications, the sources said.
Article translated by Willis Ke
