Foxconn, Apple’s key iPhone assembler with major operations in China, is planning to venture into making of electric vehicles, BBC reported following an interview with chairman and boss Young Liu.
The Taiwanese firm, which is moving some supply chains out of China amid increased tensions between US and China, considers electric vehicles as the next growth targets.
According to reports, the company is also considering to set up an EV manufacturing plant in India, and is in talks with some states regarding the same. Foxconn also plans car factories in US, Thailand, as well as in Indonesia.
Foxconn hopes to capture about 5% of the global electric vehicle market in the next few years, reports said.
In January, Foxconn had partnered with Nvidia to develop automated and autonomous vehicle platforms. As part of the deal, Foxconn agreed to be a tier-one manufacturer, producing electronic control units based on NVIDIA DRIVE Orin for the global automotive market.
Liu now said Foxconn must prepare for the worst amid the issues between the countries.
Foxconn, with an annual revenue of $200 billion, has started undertaking its business continuity planning, with some of its production lines already shifted to Mexico, Vietnam and India.
The company makes more than half of Apple’s products, including iPhones to iMacs, as well as products for Microsoft, Sony, Dell and Amazon.
Foxconn operates the world’s biggest iPhone factory in the Zhengzhou city, called iPhone City. The major plant, which was hit hard last year by worker unrest following Covid-19 spread and related restrictions, was running at 90% of planned production capacity at the end of December.
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