iPhone manufacturer Foxconn wants to focus more on making electric cars

Foxconn, known for its iPhone production, plans to focus more on producing electric cars. The Taiwanese company does this to be less dependent on China, where the majority of iPhones are currently produced.

Although iPhone production is currently Foxconn’s largest source of revenue, the company is concerned that tensions between the US and China could escalate into a conflict that could jeopardize this source of revenue. “We hope that the leaders of these countries will continue to pursue peace and stability, but as a company we must plan for the worst-case scenario,” said CEO Young Liu in an interview with the BBC.

The majority of Foxconn’s iPhone factories are located in China. Although plans were also announced earlier this year to bring part of the development of iPhones to India, making phones is still a fairly centralized undertaking. So it will take a lot of time to no longer be dependent on China in this area.

This is one of the reasons why the Taiwanese company wants to focus more on EV production. According to Liu, the development of electric cars is very similar to making telephones. Dividing EV production into factories in different countries is also more common, he says. The CEO says he wants to produce EVs in the US, Thailand, Indonesia and possibly India. Although the company has only produced a small number of cars so far, Foxconn aims to capture five percent of the global EV market within a few years.

A prototype of an EV that Foxconn showed in 2021