iPhone Maker Foxconn To Switch To Cars As US-China Ties Sour
An anonymous reader quotes a report from the BBC: iPhone maker Foxconn is betting big on electric cars and redrawing some of its supply chains as it navigates a new era of icy Washington-Beijing relations. In an exclusive interview, chairman and boss Young Liu told the BBC what the future may hold for the Taiwanese firm. He said even as Foxconn shifts some supply chains away from China, electric vehicles (EVs) are what will drive its growth in the coming decades. As US-China tensions soar, Mr Liu said, Foxconn must prepare for the worst. "We hope peace and stability will be something the leaders of these two countries will keep in mind," 67-year-old Mr Liu told us, in his offices in Taipei, Taiwan's capital. "But as a business, as a CEO, I have to think about what if the worst case happens?" The scenarios could include attempts by Beijing to blockade Taiwan, which it claims as part of China, or worse, to invade the self-ruled island. Mr Liu said "business continuity planning" was already under way, and pointed out that some production lines, particularly those linked to "national security products" were already being moved from China to Mexico and Vietnam. He was likely to be referring to servers Foxconn makes that are used in data centers, and can contain sensitive information. [...] Foxconn's hopes to capture about 5% of the global electric vehicle market in the next few years -- an ambitious target given the firm has only made a handful of models so far. But it is a gamble that Mr Liu is confident will pay off. "It doesn't make sense for you to make [EVs] in one place, so regionalized production for cars is very natural," he added. Foxconn car factories will be based in Ohio in the US, in Thailand, Indonesia and perhaps even in India, he said. For now, the company will keep focusing on what it does best -- making electronic products for clients. But perhaps not too far in the future, Foxconn will do the same for clients with electric cars. Either way, with the foray into electric cars, Foxconn is diversifying not just production but also supply lines -- both of which, Mr Liu believes, hold the key to the company's future.
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