iPhone assembler Foxconn to help launch electric cars

Bloomberg

Foxconn Technology Group’s new EV platform is expected to help launch vehicles later this year, a company official said, signifying major progress in the Taiwanese electronics giant’s push into the automotive space.
Two light vehicles designed using Foxconn’s platform will be unveiled in the fourth quarter, Chairman Young Liu of Foxconn’s flagship unit Hon Hai Precision Industry Co. told reporters at the company’s headquarters in suburban Taipei. The company may also help launch an electric bus around the same time, he said.
Hon Hai, the largest listed arm of Foxconn Technology Group, reported quarterly profit above analysts’ estimates, indicating solid demand for Apple Inc.’s iPhone 11 range.
Foxconn has been seeking to strengthen its automotive capabilities at a time when technology companies including its customer Apple Inc. are looking to expand in vehicles. Foxconn in October unveiled its first-ever EV chassis and a software platform aimed at helping automakers bring models to the market faster.
The company set up a joint venture with Chinese carmaker Zhejiang Geely Holding Group Co. last month. Liu said the venture is currently in talks with startup Faraday Future and others on cooperation on EVs. While Foxconn will see revenue from automotive ventures grow this year, Liu expects EV-related business to start making a meaningful contribution to the group’s overall sales only in 2023.
Separately, Liu said an ongoing chip shortage has only limited impact on the company’s major customers and that it doesn’t expect a trough this quarter, which is typically a low season.
Foxconn will continue its efforts to acquire an 8-inch wafer facility, Liu added, after Malaysian media outlets reported earlier that Foxconn losing its bid for SilTerra Malaysia Sdn. to another consortium. Liu said Foxconn still wants to secure a partnership with the Malaysian chipmaker.