Taiwan-based manufacturing giant Hon Hai Precision Industry Co (鴻海精密), which unveiled three electric vehicles (EVs) on Monday, expects its EV business to generate NT$1 trillion (US$35.8 billion) in sales for the group in five years.
Speaking to reporters after the introduction of the three EV prototypes, Hon Hai chairman Young Liu (劉揚偉) said that the company, known as Foxconn Technology Group (富士康科技集團) globally, expects its EV business to begin generating revenue next year at the earliest.
Sales momentum is expected to pick up in 2023 and revenue could potentially reach NT$1 trillion in five years, Liu said.
Photo: Ritchie B. Tongo, EPA-EFE
At the Hon Hai Tech Day on Monday, the iPhone assembler launched three self-developed EV models: a Model C sports utility vehicle, a flagship Model E passenger car and a Model T electric bus.
The venture, named Foxtron Vehicle Technologies Co (鴻華先進), is a collaboration between Hon Hai and Yulon Motor Co (裕隆汽車).
Foxtron is promoting the company’s MIH Open Platform for EV development, as Hon Hai aims to transform the platform into the “Android of the electric vehicle industry” in its bid to penetrate the global EV market.
As of June, more than 1,680 companies had joined the platform, including Bosch and Continental AG — both of which manufacture automotive parts — and tech giants Microsoft Corp and Oracle Co.
The open platform is expected to provide business opportunities to the members, Liu said.
In February, Hon Hai announced that it had joined forces with Fisker Inc, a US EV maker, to build a new EV model under the US brand, with the goal of starting mass production by the fourth quarter of 2023.
While Fisker has its own EV platform, if the MIH Open Platform could provide competitive solutions in chassis production, Liu said that he expects the US brand to consider switching platforms.
The EV business is so huge that Hon Hai plans to manufacture its EVs regionally, with plants in the US, South America, Europe, the Middle East, India, Southeast Asia, East Asia and China, while using the common auto chassis from the platform, he said.
The diversification of manufacturing allows Hon Hai to cater to different markets and lower production costs, Liu added.
NEW MARKET: The partnership opens up India to the Dutch company, which already has a strong hold in the semiconductor market of South Korea, Taiwan and China ASML Holding NV entered into a partnership agreement with Tata Electronics Pvt Ltd aimed at ramping up India’s goal to develop domestic chip-manufacturing capabilities. The Dutch company’s technology would help power Tata Electronics’ planned 300 millimeter (mm) semiconductor foundry in Gujarat, according to a joint statement from the two companies on Saturday. The signing of a memorandum of understanding coincides with a visit by Indian Prime Minister Narendra Modi to the Netherlands, which is looking to deepen bilateral relations with New Delhi. ASML, whose top customers include Taiwan Semiconductor Manufacturing Co (台積電) and Samsung Electronics Co, makes lithography machines that can print
PORTFOLIO REBALANCING: The adjustments in three global equity indices reflect rising investor appetite for semiconductor and artificial intelligence-related stocks Taiwan’s weighting in major global equity indices compiled by MSCI Inc is to rise modestly following the latest quarterly review, underscoring the market’s expanding role in emerging-market portfolios, as global investors continue to favor the nation’s technology sector. Taiwan’s weighting in the MSCI Emerging Markets Index is to increase by 0.30 percentage points to 23.76 percent, after the changes take effect at the close of the May 29 session. Its weighting in the MSCI All-Country Asia ex-Japan Index is to rise 0.37 percentage points to 27.16 percent, while that in the MSCI All Country World Index is to edge up slightly to
The Hsinchu County Government’s Labor Affairs Department yesterday said that it has received a plan from cosmetics brand Taiwan Shiseido Co (台灣資生堂) detailing mass layoffs at its plant in Hukou Township (湖口). While the labor authorities did not disclose the number of employees to be laid off, Japanese news media earlier in the day reported that the closure of the company’s factory in Hukou would result in 170 employees losing their jobs. Shiseido followed the law by reporting its layoff plan, the department said, adding that authorities would closely monitor negotiations between the management and affected employees and step in if any
ROUGH RECORDS: Bonds in Japan, as well is in New Zealand, Australia and the US, are seeing the effects of a nervy market as stock exchanges across Asia edge down A deepening slump in Japanese government bonds added fuel to the selloff in global debt markets as rising oil prices stoked inflation fears and pushed yields to multi-decade highs. Japan’s 30-year yield yesterday surged as much as 20 basis points to the highest level since the tenor’s debut in 1999, before paring some of the move. Shorter-maturity Japanese debt was also under pressure, underscored by weak demand at a sale of five-year notes that offered a record-high coupon of 2 percent. Concerns over inflation and government spending rippling through markets including the US, Australia and New Zealand are being amplified in Japan,
RSS