Mexico: Alternative for Foxconn's First EV PlantBy MBN Staff | Thu, 03/18/2021 - 15:29
Foxconn will decide this year between Mexico and Wisconsin to set up its first electric vehicle plant, President of Hon Hai Precision Industry, Foxconn's flagship unit, Young Liu, said during a press conference on Tuesday. He said the availability and affordability of skilled labor and engineering talent will be among the decisive factors.
According to Bloomberg, Foxconn has increased its automotive capabilities, hoping to become a viable competitor in the race to make vehicles for Apple, one of the company's biggest clients, which is actively working on its own electric car. A further driver is that growth in the smartphone business, one of the Taiwan-based company's core businesses, has slowed over the past three years.
In early February, sources told CNBC that Apple is close to finalizing a deal with Hyundai-Kia to manufacture an autonomous electric vehicle at Kia's assembly plant in Georgia. However, sources also said that Hyundai is hardly the only OEM in Apple's sights and there could be other automakers under consideration. “Smartphones are a US$500 billion annual market. Apple has about one-third of this market. The mobility market is US$10 trillion. Apple would only need a 2 percent share of this market to reach the size of its iPhone business,” Morgan Stanley Analyst Katy Huberty wrote in a research note back in January.
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