Taiwan-based Foxconn, renowned as the assembler of Apple’s iPhones, has revealed plans to construct AI data factories in collaboration with American chip giant Nvidia. The objective is to enhance AI integration within Foxconn’s electric vehicle (EV) manufacturing endeavors, marking a strategic move towards becoming a major global player in the electric car industry.
Foxconn Chairman Young Liu and Nvidia CEO Jensen Huang jointly unveiled this ambitious plan in Taipei, emphasizing the beginning of a revolutionary computing era. The facilities will leverage Nvidia’s advanced chips and software to empower Foxconn in utilizing AI effectively for its electric vehicles. These large computing systems, powered by cutting-edge chips, will create software platforms for the next generation of EVs by learning from daily interactions. Young Liu expressed that Foxconn is transitioning from a manufacturing service company to a platform solution company. In recent years, the company has exhibited an impressive array of high-end sedans, passenger crossovers, SUVs, compact pick-ups, commercial buses, and commercial van prototypes.
Unlike traditional automakers, Foxconn’s business model for EVs resembles its approach with iPhones. It aims to build vehicles for clients without selling them under its brand. In 2021, the company introduced three EV models, including two passenger cars and a bus, and continued to expand its offerings with new models such as Model N, a cargo van, and Model B, a compact SUV.
The EV industry is fiercely competitive, with global EV sales exceeding 10 million units in 2022, reflecting a 55% increase from the previous year. The International Energy Agency projects sales of nearly 14 million electric cars in 2023. Foxconn has been diversifying its business into new industries like EVs, digital health, and robotics, recognizing the potential of EVs as a logical diversification from the saturated smartphone market. The company aspires to manufacture 5% of the world’s electric cars by 2025 and eventually produce up to 40% to 45% of the world’s EVs.
Despite facing challenges in its foray into the EV industry, Foxconn remains determined and has undertaken major steps to bolster its capabilities, including collaborations with industry giants like Infineon Technologies. Drawing from its expertise in consumer electronics, Foxconn aims to revolutionize the EV market by infusing innovation into its product offerings.
