According to Young-way Liu, chairman of the company, Hon Hai Technology Group (Foxconn) is quite likely to reach a 5% global market share for electric vehicles (EV) with sales revenues exceeding NT$1.0 trillion (US$31.28 billion) by 2025.

However, Liu stated that Hon Hai intends to evolve over time into a platform and whole-EV design and manufacturing service provider, similar to the position it already holds in the ICT sector.

The Model V all-terrain electric pickup and the Model B crossover hatchback were just introduced by the group at Hon Hai Tech Day 2022. It just finished delivering its first batch of Model T electric buses to customers, and in the second half of 2023, Taiwan will see the introduction of its first electric automobile, the Model C.

Liu stressed that Hon Hai’s strength stems from its excellent vertical integration and worldwide supply chain management capabilities, which have been developed over decades and are difficult for rivals to match. Liu said it is crucial for Hon Hai to enter the more competitive EV industry. Hon Hai is convinced that the associated parts and components may be standardized and modularized through the MIH open platforms it began to increase the total supply volumes, he continued.

No one manufacturer can take them all because the number of parts and components used in EVs may be 10–20 times greater than that of mobile phones. Therefore, Liu emphasized that Hon Hai’s primary efforts are to develop technologies through platforms by integrating products from various component makers, to increase market sales through standardization and modularization, and to strengthen the platforms’ competitiveness with more component suppliers involved. According to Liu, Hon Hai will use its contractual design and manufacturing services (CMDS) for some essential but difficult-to-find components to assist clients in resolving associated issues.

Hon Hai is unlikely to produce superior in-car seats, airbags, and other interior features than rival manufacturers, but Liu claims that they can use the MIH platforms to conduct production globally and cut manufacturing costs through product standardization, ultimately improving the platform’s overall competitiveness.

Liu claimed that Hon Hai is still researching the best ways to add more MIH Consortium participants to the EV supply chain. He said that the consortium would hold a Demo Day event to introduce new electric vehicle prototypes, which, together with the Model C, B, and V, would give priority to the use of associated parts and components from member suppliers.

In order for member companies to contribute more than 50% of the components needed for Hon Hai’s EV models, Liu said that some supply chain partners without MIH memberships are also encouraged to join the consortium.

Liu emphasized that the primary goal of Hon Hai’s decision to introduce a full line of electric vehicle (EV) models was to showcase the company’s whole-car design and manufacturing capabilities. The company is hoping that by better utilizing its expertise to address manufacturing issues, car brands will be able to concentrate more on marketing.

Hon Hai, Liu reaffirmed, will continue to focus on offering high-tech design and production services to customers and will never consider creating its own brands. With the release of its own-designed Model V electric pickup, Liu thinks Hon Hai may attract new clients from worldwide pickup manufacturers and even wants to have the chance to work with Tesla in the future.

Additionally, he stressed that there will be no competition between Hon Hai and the manufacturers because all manufacturers of automotive components are likely to become suppliers for the MIH platforms. Hon Hai, he continued, thinks that the presence and promotion of an increasing number of component suppliers would enable the platforms’ advantages to be leveraged.

Liu stated that Taiwan’s manufacturing sector should be able to succeed in becoming a platform provider in the face of the once-in-a-century market opportunities for EVs. In the past, platform providers were primarily responsible for determining the supply of the majority of components for PCs and handsets. Only after accomplishing that, Liu continued, can Taiwan have a say in the global EV industry and its supply chain be able to provide far more value than just manufacturing.

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