Foxconn and its ambition to become the first electric vehicle maker “not short on material supplies”

HIGHLIGHTS

Shanghai eased restrictions regarding the Covid-19
Foxconn has strived to capture about 5% market share in the global electric vehicle market by the end of 2025

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Positive indicator of the stability of the supply chain

According to the Reuters news agency, the world’s largest electronics manufacturer Foxconn (Taiwan) said thanks to the easing of the Covid-19 lockdown in Shanghai, the company’s production situation in the second half of the year has improved. It is known that the Shanghai government has issued an official notice allowing all residents in “low-risk” areas to return to work from June 1.

The Foxconn factory in Shenzhen operates under a “closed” system, limiting employees to work and live inside the factory premises

Mr. Liu Young-way, chairman of Foxconn, further emphasized this during the company’s annual shareholder meeting: “We can be quite confident in our supply chain stability in the second half of this year.” Year-to-date shares of the company have increased by 8.7%, giving the business a market value of $52.3 billion.

Boosting chip manufacturing capacity

Chairman Liu Young-way said: “A car worth tens of thousands of dollars can’t be shipped because of a small chip worth 50 cents. This is the headache our customers are having suffered”. Prolonged global chip shortages are not just forcing automakers to shut down. Not wanting this situation to continue, Foxconn is aiming to become the first electric vehicle (EV) manufacturer “with no shortage of material supply”.

The company said it is expecting to ramp up production of EV chips, many of which are lower-end small integrated circuits including those used in power management. Besides, the company is also striving to capture about 5% market share in the global electric vehicle market by the end of 2025.

Foxconn introduced three electric car models at a technology event on October 18 last year

However, the company remains concerned that revenue from its electronics business including smartphones may decline this quarter due to rising inflation, cooling demand, and partially escalating supply chain issues. due to the blockade order in China.

At the same time, Foxconn also re-emphasized that while China’s strict COVID-19 controls in China had only a limited impact on production, demand for its products in the country has suffered as people remain shut in.

Thanh Ha

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Source: Reuters