TechDigits

Tech news
Monday, Jan 30, 2023

There's a growing chance your next electric car will be built by the same company as your iPhone

There's a growing chance your next electric car will be built by the same company as your iPhone

There's a solid chance your next electric car — perhaps your first electric car — will be made by the same company as the iPhone in your hand right now. 

There's a solid chance your next electric car — perhaps your first electric car — will be made by the same company as the iPhone in your hand right now. 

And no, we're not talking about Apple's long-rumored autonomous vehicle, which Bloomberg reports has been delayed to 2026. Nor is Google cooking up a Tesla rival of its own. 

Foxconn, the Taiwanese electronics giant that assembles all manner of popular devices including the iPhone, iPad, Kindle, and Nintendo Switch, is diving head-first into the world of electric vehicles. But rather than sell EVs under its own brand, it wants to design and manufacture cars for established automakers and the new crop of EV startups. 

In other words, what Foxconn currently does for Apple, it hopes to do for Tesla. In October, Foxconn's chairman said the company aims to someday make 40-45% of the world's EVs, matching the success it's achieved in electronics.


Foxconn unveiled an electric pickup truck prototype in October.

Foxconn unveiled its first EV prototypes last year and has wasted little time lining up a roster of automotive clients. Earlier this year, the iPhone-maker bought a former General Motors plant in Lordstown, Ohio from struggling automotive startup Lordstown Motors. Lordstown Motors just recently started shipping out Foxconn-made electric pickup trucks to customers. 

Fisker, another EV upstart, has tapped Foxconn to manufacture its second vehicle, the Pear, in Ohio starting in 2024. Foxconn will also build prototypes for yet another startup, Indi EV. And it's inked a partnership with Taiwan's Yulon Motor. 

Volkswagen is considering hiring Foxconn to build its new Scout-branded electric SUV and pickup truck destined for US buyers, Germany's Automobilwoche reported in November. 

Foxconn's foray into EVs is a savvy move, Bill Russo, founder and CEO of Automobility, a Shanghai-based auto-industry consulting firm, told Insider. The company has found great success shouldering the capital-intensive parts of manufacturing electronics, in part because it's able to buy components in such large volumes. And, he said, it's well-positioned to do the same for EV makers, who are eager to reduce the enormous investments required to develop and bring a car to market. 

Plus, vehicles are becoming increasingly internet-connected and computerized, requiring more and more of the electronic components that Foxconn is familiar with. 

"That sounds a lot like the devices that Foxconn builds today. A lot of screens, a lot of chips, a lot of stuff that they know how to buy in significant enough volume" to drive down costs, Russo said. 

Tu Le, managing director of automotive consultancy Sino Auto Insights, says Foxconn's entry will be a boon for the EV startups that don't have the cash to build their own factories. US upstarts Rivian and Lucid have spent huge sums setting up plants of their own, but not all fresh-faced EV companies have that sort of access to capital. 

"There's going to be a lot of asset-light EV startups that are going to come out in the next 24-30 months in the United States, and they're going to need a factory with capacity that can sell them a finished good at a wholesale price," he said. 

And Le could see existing automakers without strong union ties — like Tesla — outsourcing production to Foxconn someday. But first, the company will have to prove it can churn out electric SUVs and pickup trucks to the same the same standard as its iPads and iPhones. 

"It's a ton of opportunity in front of them if they can prove that the first vehicles that roll off the line in Ohio are at the highest quality, highest reliability, highest safety standards that Americans expect," Le said.
Newsletter

Related Articles

TechDigits
Close
0:00
0:00
Almost 30% of professionals say they've tried ChatGPT at work
Interpol seeks woman who ran elaborate exam cheating scam in Singapore
What is ChatGPT?
Tesla reported record profits and record revenues for 2022
Microsoft is finalising plans to become the latest technology giant to reduce its workforce during a global economic slowdown
Tesla slashes prices globally by as much as 20 percent
After Failing To Pay Office Rent, Twitter May Sell User Names
FTX fraud investigators are digging deeper into Sam Bankman-Fried's inner circle – and reportedly have ex-engineer Nishad Singh in their sights
TikTok CEO Plans to Meet European Union Regulators
U.S. Moves to Seize Robinhood Shares, Silvergate Accounts Tied to FTX
Coinbase to Pay $100 Million in Settlement With New York Regulator
FTX assets worth $3.5bn held by Bahamas securities regulator
Former FTX CEO Bankman-Fried finally arrested in Bahamas after U.S. files charges
Corruption works: House Financial Services Chair Waters doesn't plan to subpoena her donor, Sam Bankman-Fried, to testify at hearing on FTX collapse
Yellen hints at ‘national security’ probe into Twitter purchase
Elon Musk reinstates Donald Trump's Twitter account.
George W. Bush and Barack Obama will hold back-to-back disinformation conferences
Solar + Powerwall ensures you never lose power, even if the grid goes down
This man paid for strangers' grocery and it moved them to tears
Meta introduces a new version of Mark Zuckerberg
Virtual Reality on billboards: BMW advertisement on Times Square
Apple CEO Tim Cook says coding should be taught as early as elementary school: 'It's the most important language you can learn'
Apple Executive Resigns After Viral TikTok Shows Him Making Crude Jokes
Huawei is not only better technology, but also protecting users better: Apple Warns Of Security Flaw For Iphones, Ipads And Macs
Mark Zuckerberg warns many teams will ‘shrink’ as Meta revenue drops
Elon Musk reportedly begged for forgiveness after his affair with Google co-founder Sergey Brin's wife
J.P. Morgan’s wealth management guru has some advice for recent college graduates on managing money and building wealth
Pentagon widens scope of UFO-hunting unit
Bezos' girlfriend Lauren Sanchez gives $1M to group focused on migrant kids at US-Mexico border
Hong Kong gets its first metaverse churches with avatars and virtual preachers
The ‘Dirty Quid Pro Quo’ Between Democrats and Big Tech
Elon Musk swore in March not to sell any Bitcoin, but Tesla cashed out 75% of its Bitcoin holdings amid the crypto winter just months later
Crypto winter continues at Gemini as another round of layoffs hits Winklevoss crypto exchange
Ex-CIA engineer Joshua Schulte convicted over massive data leak
EU to build new top-secret bunker
Elon Musk fathered twins with one of his executives last year
Apple launches Lockdown Mode to block spyware attacks on at-risk users
Australia floods worsen as thousands more Sydney residents evacuate
Women's own body dissatisfaction appears to influence their judgment of other women's body sizes
Hacker claims to have obtained data on 1 billion Chinese citizens
British Army's Twitter and YouTube accounts restored after hack
Google will delete location history for visits to abortion clinics after overturning of Roe v. Wade
Elon Musk, Jeff Bezos, Other Top Billionaires Lose $1.4 Trillion In Worst Half Ever
Philippines orders critical news site to shut down
Social media companies could be sued for addicting children to their digital-drug in California 
Airport chaos: European travel runs into pandemic cutbacks
The teen who tracks Elon Musk's jet agreed to stop monitoring Mark Cuban's flights on Twitter after the billionaire offered business advice
YouTube Shorts Claims 1.5 Billion Global Users As TikTok Rivalry Heats Up
The “Chinese (much better) Tesla”, Nio Stock, Jumps Again As Nio Eyes 'Product Supercycle'
The Crypto Bear Market Could Last Two Years, Top Investors Say
×