Foxconn, also known as Hon Hai Precision Industry Co Ltd, has announced plans to invest T$25 billion ($820 million) over the next three years in new manufacturing facilities in southern Taiwan to support its electric vehicle (EV) ambitions. The investment will include the construction of plants for making electric buses and batteries for EVs in Kaohsiung.
The move comes as Foxconn, a major supplier and assembler for Apple Inc., seeks to diversify its revenue base and expand into the EV market. The company has been exploring various partnerships and collaborations in the EV space, including with Chinese automaker Byton and Japanese automaker Toyota.
Foxconn’s Push into the EV Market
Foxconn’s investment in Taiwan’s EV market is part of the company’s broader push into the EV space. The company has set a goal of becoming a major player in the EV market and has been exploring various avenues to achieve this.
In addition to its partnerships with Byton and Toyota, Foxconn has also formed a joint venture with Chinese automaker Geely to provide contract manufacturing services for EVs. The joint venture, called “Designated Driver”, aims to provide automakers with a full range of services, from research and development to production and delivery.
The Growing EV Market in Taiwan
Foxconn’s investment in Taiwan’s EV market comes as the country is pushing to become a major player in the global EV market. Taiwan is home to several leading EV battery manufacturers, including Foxconn subsidiary Amperex Technology, and the government has been offering various incentives and subsidies to support the growth of the EV industry.
According to a report by the International Energy Agency (IEA), the number of EVs on the road worldwide is expected to reach 145 million by 2030, up from just over 10 million in 2020. The report also notes that the EV market is becoming increasingly competitive, with new players entering the market and existing players expanding their offerings.
Conclusion
Foxconn’s investment in Taiwan’s EV market is a significant move for the company as it seeks to diversify its revenue base and expand into new markets. The investment in new manufacturing facilities for electric buses and EV batteries is part of the company’s broader push into the EV space, which includes partnerships with leading automakers and the formation of a joint venture with Geely.
As the global EV market continues to grow and become increasingly competitive, Foxconn’s move into the space could position the company as a major player in the years to come.
