Foxconn held its Tech Day on October 18, 2023, where Chairman Young Liu addressed the company’s stance and strategy in response to the high growth of the EV market in mainland China, which significantly impacts the global EV industry.

Liu began by discussing the prevailing trend of electric vehicles in China, emphasizing that while the focus has primarily been on the development of EVs, the business model has received limited attention. Foxconn’s approach in the EV industry centers on its Commissioned Design and Manufacturing Service (CDMS) business model, but Liu stressed that in China, CDMS alone is not permitted. Automakers in mainland China must engage in both manufacturing and sales.

Liu explained that the CDMS model doesn’t involve the creation of Foxconn’s own brand, a practice currently disallowed in mainland China. However, the competitive landscape is shifting, with fierce competition, particularly among domestic automakers. With an estimated 100 to 200 automakers in China, the market has become increasingly intense, prompting a focus on minimizing costs and investments. In this context, Foxconn’s CDMS model emerges as a viable solution, as investing in 100 automakers would be prohibitively expensive. Liu anticipates that China will eventually open up to the outsourcing model. While Foxconn isn’t currently engaged in EV manufacturing in mainland China, it’s gradually building relevant capabilities, preparing for the moment when outsourcing becomes permissible, enabling Foxconn to take a leading position.

Regarding the interest of Japanese automotive giants in Foxconn’s electric vehicles, Liu noted that their stance is clear. They consider themselves partners to established auto brands. Traditional automakers have traditionally covered all aspects, transitioning from internal combustion engines to batteries. However, in the age of electric vehicles, the shift can no longer be about the engine as a barrier to entry into the industry. Traditional automakers must now contemplate how to create value, which represents their most significant challenge.

Manufacturing, Liu noted, is no longer the source of value that traditional automakers can create. Instead, they should focus on marketing and services. It involves understanding how to leverage apps and scenarios to offer consumers unique experiences. Traditionally, brands like Mercedes-Benz stood for luxury, while BMW represented driving performance. In the era of electric vehicles, positioning needs to shift toward services rather than engine definitions.

Liu offered the analogy of televisions to illustrate his point. Sony was a leader during the cathode-ray tube era, but as the market transitioned to liquid crystal displays, the focus shifted to panels, and every brand became indistinguishable. Liu’s advice to potential Japanese automotive partners is to delve deeper into understanding the users, emphasizing that this will be critical in the age of electric vehicles.

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(Photo credit: Foxconn)

Chinese electric vehicle giant BYD is set to report impressive profits once again. The company announced on the 17th that it expects its net profit attributable to the parent company for the first three quarters of this year to be between CNY 20.5 billion and CNY 22.5 billion, an increase of 120.16% to 141.64% year-on-year. In the third quarter, the estimated net profit is set to reach CNY 9.546 billion to CNY 11.546 billion, representing a year-on-year growth of 67% to 101.99%. This quarterly performance mirrors the profitability achieved in the first half of the year.

BYD noted that the new energy vehicle industry continued its robust growth in the third quarter, with BYD achieving historic highs in new energy vehicle sales, maintaining its position as the world’s top seller of such vehicles. Looking at BYD’s monthly sales figures for the first three quarters of this year, the company consistently achieved record-high monthly sales. In September, BYD’s new energy vehicle sales exceeded 280,000 units, with cumulative sales for the first nine months reaching 2.0796 million units.

Furthermore, BYD mentioned that there was a “recovery in demand from Android customers” for its mobile parts and assembly business. BYD Chairman Wang Chuanfu previously stated, “We manufacture many phones, and most of Huawei’s phones are made by us.” This statement gained significant attention on social media. Subsequently, on August 29, the highly anticipated Huawei Mate 60 Pro was released and received a warm reception from consumers. This was followed by the releases of Huawei Mate 60 Pro+ and Huawei Mate X5, which joined the vanguard project.

BYD’s mobile parts and assembly business is primarily managed by its subsidiary, BYD Electronic. BYD Electronic also predicts strong profits, expecting its net profit attributable to the parent company for the first three quarters of this year to be between CNY 2.836 billion and CNY 3.116 billion, an increase of 129.29% to 151.93% year-on-year. The company stated that increased profits are mainly due to a rising proportion of overseas major customers, a rebound in Android customer demand, and continued rapid growth in new energy vehicles and new smart products, which have led to improved utilization of the group’s production capacity, further optimized business structure, and substantial profit growth.

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(Photo credit: BYD)

Foxconn is set to host its Technology Day event on October 18, with a significant emphasis on electric vehicles (EVs). Market insiders have revealed that Foxconn will showcase its first registered electric car based on the Model C platform and unveil its plans for mass production of the Model B sample vehicle.

Foxconn’s Technology Day will take place at the Taipei Nangang Exhibition Center, Hall 2, with Chairman Young Liu sharing the strategic vision of the Foxconn Group during the morning session. Foxconn will also unveil its electric vehicle and semiconductor strategies. Partners in Foxconn’s electric vehicle strategy will engage in discussions. It is expected that Jensen Huang, the founder of NVIDIA, a prominent chip design company, will share updates on their collaboration with Foxconn regarding automotive chips and applications during Foxconn Technology Day.

Foxconn recently released short videos on their official Facebook page, teasing the production version of their electric logistics concept vehicles, Model N and the urban-friendly Model B. On the upcoming Technology Day, which falls on the 18th of the month, around noon, Foxconn is set to unveil their new electric vehicles.

According to a report by the CNA, market insiders disclosed to reporters that Foxconn’s Technology Day will showcase the debut of Luxgen’s first registered electric passenger car, built around the Model C platform. The event is expected to reveal the production plans for the Model B and might also introduce new color options for the production version of Model B. However, Foxconn has declined to provide any official comments on these speculations.

As part of the Foxconn-Luxgen joint venture, Foxtron Vehicle has previously stated that the Model B sample vehicle is slated to make its debut in October. Market analysts expect the earliest launch of the Model B sample vehicle to target the Taiwanese market, with the progression aligning with the sales performance of Luxgen’s first electric passenger car.

Foxtron Vehicle has unveiled several EV prototypes, including Model B, Model C, Model E, and Model T. The production version of the Model T electric bus is already available in Taiwan, while the Model C electric passenger car has been designed for mass production and is expected to be delivered in the fourth quarter of this year. The Model C’s international release is forecasted for the third quarter of 2025.

(Photo credit: Foxconn)

As reported by CNA on October 16th, Market speculations rise as NVIDIA CEO Jensen Huang’s visit to Taiwan for Foxconn Technology Day draws attention. Industry sources suggest potential collaborations in server and electric vehicle sectors.

Jensen Huang is set to visit Taiwan for Foxconn Technology Day, continuing discussions about possible partnerships between the tech giants. Industry experts have noted that the collaboration between NVIDIA and Foxconn extends primarily into the server sector, but there may also be untapped collaboration opportunities in the electric vehicle domain.

The market has been abuzz with speculation about Jensen Huang’s visit, following his visit to Taiwan in May. It is anticipated that he will participate in Foxconn Technology Day scheduled for October 18. Foxconn, the world’s largest contract electronics manufacturer, has remained tight-lipped about Huang’s visit. Nevertheless, the NVIDIA CEO has already arrived in Taiwan and was seen enjoying the local night markets, happily taking photos with fans.

Regarding Jensen Huang’s visit and the possible partnership with Foxconn, Dr. Arisa Liu , Research Fellow and Director of the Industrial Economic Information Database at Taiwan Institute of Economic Research (TIER), pointed out that while the primary focus of the collaboration between NVIDIA and Foxconn lies in the server sector, Foxconn is aggressively expanding its electric vehicle (EV) ventures, creating space for potential cooperation between the two tech giants in the EV field.

Dr. Liu emphasized that the recent negative press regarding artificial intelligence (AI) has raised concerns about the future growth prospects of AI. Additionally, NVIDIA is currently under investigation by the European Union for antitrust issues. Thus, Huang’s visit will be closely observed to determine whether it can help bolster the momentum in the supply chain.

The partnership between Foxconn and NVIDIA dates back to several years, with Jensen Huang holding a private meeting with Foxconn Chairman Young Liu during his visit to Taiwan in May. Last year, Foxconn’s subsidiary, Industrial Internet (IIoT) company Foxconn Industrial Internet (FII), announced the adoption of NVIDIA’s Grace CPU system for high-performance data centers and edge computing applications. FII introduced server systems powered by NVIDIA’s Grace CPU superchip, catering to the growing demand for efficient data centers.

In January of this year, Foxconn and NVIDIA announced a strategic partnership to collaborate on automotive and autonomous driving platforms. As part of the agreement, Foxconn became NVIDIA’s first-tier manufacturer, responsible for producing electronic control units (ECUs) based on NVIDIA’s DRIVE Orin system-on-a-chip (SoC) design for the global automotive market.

The tech industry will be closely monitoring Jensen Huang’s visit to Taiwan and the Foxconn Technology Day event for further insights into the evolving collaborations and strategic directions between Foxconn and NVIDIA.

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(Image: NVIDIA)

According to Taiwan’s Economic Daily, Hon Hai Precision Industry Co., also known as Foxconn, is set to begin mass production of its electric vehicle Model C in the fourth quarter. With electric vehicles offering higher profit margins compared to iPhone assembly, this move is expected to further boost Hon Hai’s profit margins and strengthen its overall profitability structure as it continues to pivot towards a higher proportion of higher-margin products.

Based on the Model C, developed by Hon Hai’s subsidiary Foxtron, the company is also working on the electric vehicle “n7” for its customer, Yulon Group’s Luxgen brand. It has already received pre-orders for approximately 25,000 units and plans to start mass production in the fourth quarter of this year, with gradual deliveries starting in January next year. The company is aiming to export these vehicles as early as 2025, contributing to Hon Hai’s electric vehicle business achievements and expanding its electric vehicle manufacturing footprint.

The Luxgen n7 electric vehicle will offer three different versions, all equipped with Level 2 advanced driver-assistance systems (ADAS). These three versions include the standard model with a range of 420 kilometers, the long-range version with a range of up to 700 kilometers, and the performance version, capable of accelerating from 0 to 100 kilometers per hour in under 3.8 seconds. The prices range from TWD 999,000 to TWD 1,299,000, making it the only pure electric vehicle priced below one million New Taiwan Dollars in the Taiwanese market.

(Photo credit: Luxgen)