Hon Hai Precision Industry (Foxconn) expects to see its automotive product line generate revenue between NT$50 billion (US$1.63 billion) and NT$100 billion in 2023, up from NT$20 billion in 2022.
During its recent investor meeting, Foxconn chairman Young Liu pointed out that Foxconn's business groups have been continuously investing in fields related to electric vehicles (EV).
Foxconn plans to expand its EV layout in North America this year and will work with both traditional and startup automakers, Liu said. Foxconn will add new electronic control and sensor product lines in 2023, as well as battery cell and battery pack test verification.
Foxconn will continue to expand its EV customer base and deepen its supply chain partnerships in 2023, according to Liu. The company expects to see new revenue from component and vehicle assembly in 2023.
Liu reiterated that Foxconn is steadily working toward its goal of becoming a world-class design and manufacturing service provider in the EV industry, and still aims to generate NT$1 trillion in EV-related revenue by 2025.
In addition to the mass production of electric tractors at its Ohio, US plant in March, Foxconn will deliver the Model C EV in the latter half of the fourth quarter this year. Foxconn's plant in Thailand is currently under construction. Negotiations with traditional automakers are ongoing.
Liu pointed out that Foxconn already has component-related business dealings with traditional automakers, which contributed nearly NT$20 billion in revenue in 2022 and is expected to continue developing in 2023. This includes electronic components, mechanical components, batteries, battery cells, and battery packs.
Providing traditional automakers with components, in addition to vehicle assembly services, is an important revenue stream for Foxconn, Liu said. As such, Foxconn will continue to expand its plant in Mexico.
Foxconn also continues to advance R&D for EV-related batteries. The company's battery center in Kaohsiung, Taiwan, is expected to conduct a test run of its first production line in the fourth quarter. Mass production of lithium ferrophosphate (LFP) batteries for electric buses is expected to start in second-quarter 2024.
Foxconn also has battery-related plans for its Wisconsin and Ohio plants—the Ohio plant will focus on battery packs since it is centered around EVs and the Wisconsin plant will focus on both battery packs and battery cells since it mainly deals with new energy applications.
In terms of semiconductor industry development, Foxconn will focus on customer development, mass production preparation, and upstream and downstream supply chain cooperation in 2023. Foxconn has already completed the development of its automotive chip software and hardware platform.
On the software side, Foxconn plans to continue developing smart cockpits, EEA architecture, and other software solutions with its partners, while also strengthening its vehicle-to-everything (V2X) infrastructure. The company is also investing in the automotive development platform HHEV.OS to help realize the goal of software-defined EVs.
