Foxconn Technology, the world’s biggest contract assembler of consumer electronics and main assembler of Apple products, says it has joined forces with a fellow Taiwanese hardware firm to delve further into electric vehicle production as the global market is set to grow.
The assembler founded by one of Taiwan’s richest people, billionaire Terry Gou, formed a “strategic alliance” with Yageo Group, Foxconn announced last week. The alliance will advance Foxconn’s fledgling electric vehicle business by sharing Yageo’s years of experience in EV components along with its knowhow in 5G technology and semiconductor packaging, the statement says.
“Through the cooperation with Hon Hai Group, we are able to enlarge mutual technological benefits and resource sharing to maximize the value of both groups and see multiple growths in the future,” Yageo Chairman Pierre Chen says in the statement.
Release of newer models, “pent-up” demand and supportive government policies should raise EV sales from 2021 after a drop this year caused by Covid-19 containment measures, analysis firm ResearchAndMarkets.com said in July. The global EV market is forecast to expand at an 18.4% compound annual growth rate from 2020 to 2025, fellow market analysis firm Kenneth Research forecasts.
Foxconn has tried over the past decade to reduce its dependence on contract manufacturing in the face of rising competition for workers in China and slowing growth in the global consumer electronics industry. A foray this year into medical gear is part of that drive.
Foxconn’s Chairman Young Liu announced in January that it would set up a joint venture with Fiat Chrysler Automobiles and ship EVs within two years. A month later, Foxconn said it would establish a joint venture with Yulon