Odd Lots Foxconn Has a Plan to Upend the Electric Vehicle Industry
Jun 9, 2022
Tim Culpan, a Bloomberg Opinion columnist based in Taipei, dives into Foxconn's ambitious plans to shift from iPhone assembly to electric vehicle (EV) manufacturing. He reveals how Foxconn aims to redefine its role by producing key components for EVs, potentially disrupting the automotive industry. The conversation covers the company's history in tech manufacturing, the interdependence between Foxconn and Apple, and the competitive landscape with traditional automakers. Culpan also outlines Foxconn's goal of producing 750,000 EVs annually by 2025, marking a significant industry transformation.
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Component vs. Assembly
- Foxconn's component manufacturing involves combining small chips into larger modules.
- These specialized, essential components are difficult to replace, giving Foxconn an edge.
Scaling Production
- Foxconn's expertise lies in scaling production and maintaining high quality and yields.
- This capability made them the ideal partner for Apple's high-volume products like the iPod and iPhone.
Apple-Foxconn Codependency
- Apple and Foxconn have a codependent relationship, with 70% of iPhones still made by Foxconn.
- Apple relies on Foxconn for production, while Foxconn relies on Apple for 50% of its revenue.