Taiwanese manufacturer Foxconn, renowned for its production of iPhones, has announced a strategic shift towards electric vehicles (EVs) amidst the strained relations between the United States and China.
In an interview with the BBC, Chairman Young Liu conveyed the company’s intent to make substantial investments in the EV sector while concurrently diversifying its supply chains away from China.
Liu acknowledged the importance of peace and stability between the two nations but emphasised the necessity, from a business standpoint, to consider contingency plans for adverse scenarios.
In response to the prevailing geopolitical tensions, Foxconn has already commenced the relocation of certain production lines from China to alternative locations in Mexico and Vietnam.
This decision comes as Foxconn finds itself embroiled in a contentious dispute, with Beijing claiming Taiwan as part of China and President Xi Jingping reiterating commitments to “reunification.” Meanwhile, the United States has expressed unequivocal support for Taiwan’s independence, with the looming specter of invasion having cast a shadow over the island nation for years.
Having originated in 1974 as a manufacturer of television dials, Foxconn has emerged as a global technology powerhouse, amassing revenues of $200 billion. Responsible for over half of Apple’s product output, including iPhones and iMacs, the company also serves an array of esteemed clients such as Microsoft, Dell, and Amazon.
Foxconn’s unique position as a company that designs products in the United States while predominantly manufacturing them in China has left it navigating a delicate equilibrium between the two global superpowers.
Chairman Liu articulated his vision of capturing approximately 5 per cent of the global electric vehicle market within the coming years. He outlined plans for establishing Foxconn EV manufacturing facilities in Ohio, United States, as well as in Thailand, Indonesia, and potentially India.
By pivoting toward electric cars, Foxconn seeks to leverage its technological prowess and industry influence to secure a significant stake in the evolving EV landscape.