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, and 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, which means almost 3 million products. This is a truly ambitious goal, but Foxconn already took several initiatives such as a plan to set up a joint venture with FCA to build electric cars in January 2020.
Who is Foxconn?
According to the company’s Homepage, the profile of Foxconn is here:
Established in Taiwan in 1974, Hon Hai Technology Group (Foxconn) (2317:Taiwan) is the world’s largest electronics manufacturer. Foxconn is also the leading technological solution provider and it continuously leverages its expertise in software and hardware to integrate its unique manufacturing systems with emerging technologies. By capitalizing on its expertise in Cloud Computing, Mobile Devices, IoT, Big Data, AI, Smart Networks, and Robotics / Automation, the Group has expanded not only its capabilities into the development of electric vehicles, digital health and robotics, but also three key technologies –AI, semiconductors and new-generation communications technology – which are key to driving its long-term growth strategy and the four core product pillars: Consumer Products, Enterprise Products, Computing Products and Components and Others.
The company has established R&D and manufacturing centers in other markets around the world that 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. In addition to maximizing value-creation for customers who include many of the world’s leading technology companies, Foxconn is also dedicated to championing environmental sustainability in the manufacturing process and serving as a best-practices model for global enterprises.
In 2019, Foxconn achieved NT$5.34 trillion (which is almost equal to 173 billion USD) in revenue. The company has received widespread international accolades and recognition since its establishment. In 2019, the company ranked 23rd on the Fortune Global 500 rankings, 25th in the Top 100 Digital Companies, and 143rd in the Forbes ranking of the World’s Best Employers.
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, which accounts for about one third of total cost. The problem of batteries is not only their cost but also several technological issues such as 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, in order to develop this kind of products, 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. Therefore, we can say that Foxconn really wants to diversify its portfolio and EV market is one of the most important market, and the company is a serious candidate to lead the transformation and innovations.