Foxconn has a big ambition in Electric Vehicles market
“Foxconn aims to be the Android of electric vehicles, in a reference to Google’s mobile operating system.” Several media reported the news in October, 2020. Foxconn is famous for manufacturing iPhone, Nintendo 3DS and other products. However, the number of shipment of smartphones is saturated since the late of 2010s. As a result, the technology giant wants to enter a new market.
The media also reported that the company wants to gain 10% of Electric Vehicle market share by 2027. It means almost 3 million products. This is a truly ambitious goal. However, Foxconn already took several initiatives such as a plan to set up a joint venture with FCA to build electric cars in January 2020. Later, we can see the other news that the Taiwanese company will manufacture EVs in the US.
Who is Foxconn?
According to the company’s Homepage, the profile of Foxconn is here:
Hon Hai Technology Group (Foxconn) was established in Taiwan in 1974. The company is the world’s largest electronics manufacturer. Foxconn is also the leading technological solution provider. In addition, it continuously leverages its expertise in software and hardware to integrate its unique manufacturing systems with emerging technologies.
Foxconn capitalize on its expertise in Cloud Computing, Mobile Devices, IoT, Big Data, AI, Smart Networks, and Robotics / Automation. The Group has expanded its capabilities into the development of electric vehicles, digital health and robotics, and three key technologies. They are AI, semiconductors and new-generation communications technology.
In fact, three key technologies drive the four core product segments: Consumer Products, Enterprise Products, Computing Products and Components and Others. Foxconn has established R&D and manufacturing centers in other markets around the world. It includes China, India, Japan, Vietnam, Malaysia, Czech Republic, U.S. and more. With a focus on research and development, the company owns more than 83,500 patents.
What is attractiveness of Electric Vehicle?
According to the survey of our group companies, some consumers in Japan told us that they felt the attractiveness of Electric Vehicles (EVs) was update of their software. Therefore, we could say that EVs are next smartphones in our society.
Technological challenges in EVs
One of the big technological challenges of electric vehicles is the cost of batteries. In fact, it accounts for about one third of total cost. The problem of batteries is not only their cost but several technological issues. They are short lifetime, being flammable and explosive. Solid state batteries are one of possible solutions and could transform industries drastically. However, they are not ready for mass production and still the stage for Research and Development.
Therefore, Foxconn is collaborating with battery supplier (CATL), which is the world’s third largest provider of EV, HEV and PHEV battery solutions behind Panasonic and BYD based on annual shipments. We can say that Foxconn really wants to diversify its portfolio. Thus, the company is a serious candidate to lead the transformation and innovations.