Foxconn, the famous iPhone maker, is set to make a major shift in its supply chains and strategic direction, betting heavily on the electric vehicle market.
In an exclusive interview, Young Liu, Chairman and CEO of Foxconn, provided insight into the future direction of the company as it navigates the complex landscape of frosty US-China relations. Liu pointed out the importance of electric vehicles as driving Foxconn’s growth in the coming decades.
While wishing for peace and stability between the two nations, he also acknowledged the need to be prepared for worst-case scenarios. Indeed, given the potential risks such as a blockade by Beijing or an invasion of Taiwan, Foxconn has already started moving some production linesespecially those associated with “national security products”, from China to other locations such as Mexico and Vietnam.
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Foxconn could soon make electric cars
Founded in 1974 to make TV buttons, Foxconn, also known as Hon Hai Technology Group, has become one of the most influential technology companies in the world, with annual revenue of $200 billion. Renowned for making more than half of Apple’s products, including iPhones and iMacs, Foxconn is also a key supplier for companies such as Microsoft, Sony, Dell and Amazon. The company had gone through a complicated period last year, as it experienced a massive wave of resignations on the iPhone production lines.
Another problem is that Foxconn finds itself stuck between the world’s two largest economies. Taiwan, where Foxconn is headquartered, is one of the potential hotspots in relations between the United States, where the company’s research labs are located; and China, where most of Foxconn’s factories are located.
By embarking on the path of electric vehicles, Foxconn may well want to mitigate the potential risks associated with the complex dynamics between the United States and China. In the near future, Foxconn could manufacture electric cars for Indian customers.
Officials from the Maharashtra, Telangana, Tamil Nadu and Andhra Pradesh regions have reportedly already met with senior Foxconn executives, but it’s unclear where the giant will turn. In 2022, Foxconn chairman Young Lio had already met Prime Minister Narendra Modi during his trip to India. The latter had then tweeted that the company’s effort in favor of the manufacture of electric vehicles was ” in line with our commitment to net zero emissions “.
