Foxconn, the world’s largest contractor and iPhone maker, has announced it could be turning its focus to electric cars in the future.
In an interview with the BBC, Foxconn boss Young Liu described an electric car as a “big iPhone” and described automobiles as a “great opportunity” for the company.
Liu told the BBC: “The reason why we think this [electric cars] is a great opportunity for us is that with the traditional gas engine, you have engines which are mostly mechanical.
“But with EVs, it’s batteries and motors.”
According to the broadcaster, in the next few years, Foxconn is hoping to take control of around 5% of the global electric vehicle market.
By 2040, electric vehicles are expected to account for 50% of new car sales, according to research firm GlobalData.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
The Foxconn boss said that the company’s car factories would be globally based, with spots in the US, Indonesia and Thailand.
Liu also toyed with the idea of India, the BBC reported.
“It doesn’t make sense for you to make [EVs] in one place, so regionalised production for cars is very natural,” he told the publication.
The comments come as Foxconn begins to shift some of its supply chains away from China – following growing tensions between the US and China.
According to Liu, the company is in the middle of “business continuity planning” and certain production chains linked to “national security products” are being moved away from China.
Liu told the BBC: “We hope peace and stability will be something the leaders of these two countries will keep in mind.
“But as a business, as a CEO, I have to think about what if the worst case happens?”
Foxconn recently announced it would be investing $500m in manufacturing plants in the Indian state of Telangana, emphasising big tech’s push to move out of China.