Whatâs Going On Here?iPhone maker Foxconn announced a lofty goal on Tuesday to manufacture nearly half of the worldâs electric vehicles (EVs). What Does This Mean?As the worldâs biggest contract electronics manufacturer, ââwith nearly 50% of the worldâs information and communication tech market under its sway, thereâs little reason to doubt Foxconnâs ability to muscle into new industries. Thatâs doubly true given that the company â which plans to manufacture the EVs for other firms â is making all the right moves so far: itâs built prototypes from scratch to show what it can do, and has already formed cozy partnerships with established carmakers and EV startups alike. With shrewd strategies like that, itâs no wonder Foxconnâs showing such moxie: the companyâs aiming to have 5% of the global EV market â worth about $31 billion â as soon as 2025, and hopes to manufacture nearly half of all the worldâs EVs in the long run. Why Should I Care?The bigger picture: There is a world elsewhere.
This move wonât just introduce Foxconn to a new industry, itâll bring the firm to crucial new regions too. The lionâs share of Foxconnâs tech manufacturing has been based in China to date, but with geopolitical tensions between Taiwan and the Peopleâs Republic on a steady boil, it makes sense that the firmâs casting around for some new friends right now. And with new staff in the EV division based exclusively outside of China, this latest move sure shows that Foxconn's shifting gears.
Zooming out: Everyoneâs panning for gold.
Itâs not a bad time to be breaking into the EV industry: itâs a market where winners can win big right now. Just take a look at BYD, the Chinese EV company, which announced this week that its quarterly profit could jump 365% to a new record high. With growth like that on the table, itâs no wonder that the industryâs caught Foxconnâs eye. | 