As the electronics manufacturer intensifies efforts to become a significant worldwide participant in the production of electric cars, Foxconn from Taiwan claims that it plans to construct artificial intelligence (AI) data factories using technology from American chip giant Nvidia.On Wednesday in Taipei, Nvidia CEO Jensen Huang and Foxconn Chairman Young Liu jointly unveiled the intentions. The two claimed that Foxconn will be able to use AI more effectively in its electric vehicles (EVs) thanks to the new facilities that use Nvidia’s processors and software.
A new revolution in computing is only getting started, according to Huang. “With computers, we can now write software that humans cannot.” This marks the start of a whole new approach to software development.They said that by learning from ordinary encounters, large computing systems driven by cutting-edge CPUs will be able to design software platforms for the next generation of EVs.According to Liu, Foxconn is evolving from a manufacturing service provider to a platform solutions provider. “Foxconn has demonstrated an impressive array of premium sedans, passenger crossovers, SUVs, compact pickup trucks, commercial buses, and commercial vans in just three short years.”
Foxconn, well known for assembling Apple’s iPhones, sees an identical business plan for electric vehicles. The cars aren’t sold by it under its own name. Rather, it will construct them for customers in Taiwan and around the world.Foxconn made its debut with three electric vehicle (EV) models in 2021, which included a bus and two passenger automobiles. During Foxconn’s tech day on Wednesday, two new vehicles—Model B, a compact SUV, and Model N, a cargo van—were unveiled after these and other models from the previous year.
Its electric buses started running in the southern Taiwanese city of Kaohsiung last year, while its first electric car, sold under the N7 brand by Taiwanese automaker Luxgen, is expected to begin deliveries on the island from January 2024.Foxconn has entered a competitive industry.Global sales of EVs, including purely battery powered vehicles and hybrids, exceeded 10 million units last year, up 55% from 2021, according to the International Energy Agency. Nearly 14 million electric cars will be sold in 2023, it projected.
The Hon Hai Technology Group, formally known as Foxconn, has been growing its company by venturing into new markets like robotics, EVs, and digital health.
Its move into the EV market, according to analysts, is a “logical diversification.”
According to Kylie Huang, a Daiwa analyst based in Taipei, smartphones are “a very saturated market already, and the room to grow in the… industry is getting [smaller]”. “I do believe that [they] could become influential in the next couple of years if they can really tap into the EV business.”
Liu said reporters at last year’s tech day that the company aimed to produce five percent of the world’s electric vehicles by 2025. Its ultimate goal is to create between 40 and 45 percent of all EVs worldwide.
However, its entry into the field hasn’t been without its challenges.Foxconn acquired Lordstown Motors’ Ohio plant last year, which produced compact cars for General Motors. The American automaker filed for bankruptcy protection and revealed a lawsuit against Foxconn in June, marking the end of that collaboration.Foxconn rejected the lawsuit as “meritless” and chastised Lordstown Motors for making “false comments and malicious attacks.” Lordstown Motors accused Foxconn of “fraud” and neglecting to fulfill investment agreements.
Foxconn is obviously embracing its higher goals, though, as evidenced by the appointment of two new chief strategy officers for its semiconductor and electric vehicle divisions.
A veteran of the Taiwanese semiconductor industry, Chiang Shang-yi led TSMC to become a global foundry powerhouse, and in charge of the EV division is Jun Seki, a former vice chief operating officer of Nissan Motor.Foxconn stated in May that it would be establishing a new research center in Taiwan in collaboration with Infineon Technologies, a German company that specializes in automotive semiconductor chips.
The founder of the Shanghai-based consulting business Automobility, Bill Russo, stated that Foxconn may be able to produce more inventive electric vehicle (EV) products than traditional automakers because of its experience in consumer electronics.The main issue with legacy automakers, according to him, is that they usually prefer to start with a very limited set of needs rather than a blank slate because they have already invested a significant amount of money in a carryover platform. “The way you think about vehicles is constrained by those carryover technologies.”
“I’m going to challenge all of that, I’m going to blow up the basic architecture of a car and simplify it greatly,” was how Tesla first introduced itself, he continued.That, in my opinion, is a technology company’s advantage. And I believe Foxconn will approach this in that manner.