After Nidec, it is now Foxconn who wants to enter the market
They want to supply components to 10% of the world’s electric cars
Foxconn, a manufacturer linked to Apple and in charge of the iPhone assembly process, among others, wants to supply components or intervene in 10% of the world’s electric cars before 2027. Its chief executive officer, Liu Young-way, has confirmed that it already talks have started with some brands.
The Taiwanese firm, which is responsible for the assembly of almost half of the world’s consumer electronics, would thus follow in the wake of Japan’s Nidec, which also sees the electric car as an opportunity to expand horizons.
Nidec is in charge of the production of the silent motors for the iPhone, but now it would be interested in producing its own e-axle – a block made up of the motor, transmission and electronics. He is confident that more and more manufacturers will outsource these components and wants to amass 35% of this specific market – e-axles – before the decade is out.
It is not yet clear which product Foxconn would supply, although there are indications. Reuters agency quotes its president promising the development of an “open platform” to manufacture key components for car brands, including batteries and connectivity services.
Foxconn is also developing a solid-state battery, which it plans to introduce to the market in 2024. A 10% market share – in this case, cars with technology or company involvement – is a target to be achieved at some point in the period 2024-2027.
“We want to bring Taiwanese electric car technology to the rest of the world,” Liu said. He has not gone into details about the negotiations he has with the automotive industry, but has declared that “they are under way.” “We have to move fast to get market share.”
The hypothesis of Nidec, also Foxconn, is that the transition to the electric car will substantially change the industrial needs associated with the automotive industry. They bet that it evolves like consumer electronics, in which a few suppliers supply the big brands, even the competition.