Foxconn Electronics (Hon Hai), by virtue of its global business connections and channels, is making efforts to seek market demand for products made by members of the MIH Alliance, according to company chairman Young Liu.
MIH is an open software/hardware-integrated platform specifically for developing electric vehicles (EVs) launched by Foxconn in cooperation with Yulon Motor in October 2020, and is currently managed by the alliance.
Foxconn found that developing an EV would cost as much as NT$10-20 billion (US$359-717 million) and would take 3-4 years; the cost would be too high and the time would be too long for ICT makers, Liu said. Therefore, Foxconn cooperated with Yulon to use experience accumulated by ICT makers to set up a platform based on modularization and standardization of components in a bid to reduce cost for and time taken in developing EVs, leading to the establishment of MIH, Liu explained.
Regarding the meaning of MIH, M stands for minimalism, I for intrinsic, innovation and intelligence, and H for harmonious, Liu noted.
So far in promoting MIH, the greatest challenges have been to convince traditional manufacturers and ICT makers that MIH has potential and that Foxconn can use MIH to lead supply chain members toward successful development in the global EV market, Liu indicated.
To participate in the global EV market, Taiwan-based makers should not compete with traditional ICE (internal combustion engine) automobile makers, Liu said. Unlike ICE cars, EVs entail use of semiconductor components and software in large volumes and thus Taiwan-based makers ought to capitalize on such business opportunities to complement traditional ICE automobile makers rather than compete with them, Liu explained.
For example, members of the MIH Alliance can already supply about 50% of the key components of EVs' smart cockpits, and the proportion is hoped to exceed 80% in the future, Liu noted. Furthermore, Taiwan-based makers are expected to supply 90% of EV-use components such as batteries, electric power systems, and electrical/electronic control systems in 2024, Liu indicated.
