More than 1200 suppliers have agreed to work with Foxconn to build electric vehicles

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    Liu Yangwei, chairman of Foxconn, said electric cars are the iPhone assembler’s “next big product” and are likely to grow into a bigger business than electronics
    Tencent technology news on March 26, Foxconn announced that it has attracted more than 1200 suppliers to participate in its electric vehicle project, and the iPhone assembler hopes to expand its behind the scenes influence to another emerging industry. Foxconn also said it would focus on making vehicles for other companies and brands.
    Jack Cheng, chief executive of Foxconn’s MIH Open Platform Alliance, said the project aims to explore a new business model for the electric vehicle industry and create a free Android operating system for Google smartphones in cars.
    Foxconn’s suppliers include major global software and auto parts manufacturers, such as Nidec, Murata manufacturing, NTT and Ningde times, a Chinese battery manufacturer invested by Foxconn, as well as American giants such as Amazon AWS and Microsoft, and Infineon, a German semiconductor manufacturer, will join in.
    Foxconn plans to set up factories in China and North America, either in Mexico or Wisconsin. Mass production is expected to start in 2023, and the company hopes to capture 10% of the global electric vehicle market by 2027.
    Jack Cheng has more than 40 years of experience in the automotive industry. He was vice president of Ford Motor Company in China and chairman of Fiat’s China business. However, he is moving away from the manufacturing model he has been familiar with for a long time to create something new, which has attracted the interest of many electric vehicle manufacturers.
    Foxconn’s ambition is to subvert the electronics manufacturing industry, just as Android has transformed the smartphone industry. Google launched the Android free operating system in 2008, before the smartphone took off, which lowered the threshold for mobile start-ups who may lack the resources to build their own core software to enter the field.
    The most prominent examples are China’s Xiaomi and oppo, which have replaced Lenovo and Sony as the world’s two largest smartphone brands. Outsourcing production entirely to companies like Foxconn also reduces the necessary upfront investment.
    Foxconn electric vehicle chassis prototype appeared in October last year, causing a lot of attention
    Now Foxconn hopes to create a similar level playing field in the electric vehicle industry through its open MIH platform. Foxconn will provide detailed specifications of components including chassis and ultra-high speed 5g (supporting automatic driving function), which can be used as the basis of their own design by companies around the world.
    According to an insider, the platform will cover about 80% of the development process of electric vehicles, and the remaining 20% will be handled by auto companies themselves, including appearance design and other finishing work. In exchange for a free platform, the auto company will outsource all production to Foxconn.
    This model is consistent with the shift of the electric vehicle industry. A large number of new participants have emerged. They mainly focus on design and have no interest in expensive production facilities. They are equivalent to “no factory” chip companies.
    This trend has aroused the interest of Foxconn, which started with OEM. Electric vehicles and smart phones are not completely different. It is expected that in the near future, the car will also be full of advanced telecommunications technology used on mobile phones.
    “Foxconn has the potential to become a platform provider for the electric vehicle industry,” said Tang Jin, a senior researcher at Mizuho bank and an expert in the automotive and electrical equipment industry. It is predicted that the company will cooperate with Huawei in the future. Like smartphones, Chinese companies will dominate the production of electric vehicles and become the core of the industry. ”
    Foxconn is an important assembler of Apple’s iPhone, where more than 60% of the chip foundry in the global semiconductor industry is located, which makes it the focus of the spotlight in the case of recent shortage. Foxconn also wants to make itself an integral part of the electric vehicle industry.
    Foxconn Chairman Liu Yangwei said the scale of its electric vehicle business is likely to exceed its current pillar businesses such as smartphone assembly. Jack Cheng said that the first platform of the MIH alliance is scheduled to be released in October, which will be the first test it faces. Big automakers will be watching closely to see if it is as disruptive as Android. (Tencent technology reviser / Jinlu)