[News] Foxconn’s Electric Vehicle Business Push Strengthens Profitability

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)


[News] Foxconn and Blue Solutions Collaborate on Two-Wheeler Solid-State Battery Ecosystem for Indonesia

Source to Blue Solutions, Blue Solutions has signed a memorandum of understanding with Foxconn and its subsidiary, SolidEdge Solution Inc., to jointly develop a solid-state battery ecosystem for the electric two-wheeler market.

Blue Solutions is a Bolloré Group entity and global industrial-scale designer and manufacturer of solid-state batteries, which have been marketed since 2011. The company has signed a memorandum of understanding (M.O.U.) with Foxconn – the world’s largest electronics manufacturing services provider – and its subsidiary SolidEdge Solution Inc., which designs battery materials. The aim of the agreement is to jointly develop a solid-state battery ecosystem.

The partners have agreed to combine their expertise, technologies, and resources to develop and produce batteries for two-wheeled vehicles. The partners’ objective is to co-develop batteries using Blue Solutions’ exclusive solid-state cell technology. Specifically, they will use Blue Solutions’ innovative Gen4 technology and SolidEdge Solution’s materials to equip two-wheeled vehicles to serve the target markets. According to the terms of the agreement, variants of these battery systems may also be adapted for other electric vehicles.

The cooperation between Blue Solutions and Foxconn will initially target the Indonesian market. According to McKinsey’s estimates, the global two-wheeled vehicle market will be worth about $218 billion by 2029, with a CAGR of 8.7% and the main growth momentum will come from electric motorcycles. The country’s ultimate goal is to have the number of electric motorcycles reach 13 million by 2030, a fraction of what it is now.

As a pioneer, Blue Solutions has an extensive background in solid-state batteries with research going back to the 1980s. It is the sole producer in the world, and since 2011, of solid-state cells, modules, and packs with production lines located both in France and in Canada. At this date Bolloré group has already invested €3 Billion in Blue Solutions and its activities, leading to more than 3 million cells delivered to the market.

Foxconn’s subsidiary, SolidEdge Solution, was founded in 2021 and is a pioneer in the development of battery materials in Taiwan. The goal of this innovative work is to develop common materials for each of the main components of a battery cell.


India Defers Import Restrictions on Electronics, Divergent Approaches by Taiwanese and American Brands

According to reports in the Indian media, India has decided to delay the implementation of import restrictions on electronic products such as laptops, tablets, and servers. This delay pushes the commencement date to November 2023. As a result, Taiwanese, American, and Chinese laptop manufacturers are now reevaluating their production strategies in India and expediting their applications for importing electronic goods.


[News] Luxshare Doubles Business with 3 iPhone 15 Orders, Breaking Foxconn’s High-End Supply Dominance

According to a report by Taiwan’s Money DJ, Chinese assembly contractor Luxshare Precision has been actively entering Apple’s supply chain in recent years and has secured contracts to manufacture high-end models of the iPhone 15, no longer exclusively produced by Foxconn. Luxshare Precision’s Chairman, Wang Laichun, revealed in a recent interview that they have secured orders for three iPhone 15 models this year, and this business segment has doubled in performance over the past year.

She also disclosed that they are preparing for the production of Apple’s upcoming head-worn device, the Apple Vision Pro, set to be released early next year.

As reported by The Paper, Wang Laichun pointed out that Luxshare Precision currently provides development and manufacturing services for a range of Apple products, including iPhones, Apple Watch, AirPods, and Apple Vision Pro. They offer an integrated solution, from diverse components and modules to complete system assembly.

Luxshare Precision’s semi-annual report for 2023, released at the end of August, showed that their sales for the first half of the year reached RMB 97.97 billion, with a year-on-year increase of 19.53%. Their net profit was RMB 4.154 billion, marking a year-on-year increase of 22.48%. Not only did they achieve record cash flow, but several financial indicators also improved. Luxshare Precision expects its net profit for the first three quarters of 2023 to reach between RMB 7.040 billion and RMB 7.680 billion, a year-on-year increase of 10% to 20%.

The report noted that Wang Laichun attributes this growth to the company’s process optimization and efficiency improvements, which have led to a significant increase in the number of iPhone production models and quantities in recent years. She also mentioned that the company continues to expand its capacity in China to meet Apple’s demands. Last year, they established a new facility in Kunshan dedicated to iPhone development and production, creating tens of thousands of job opportunities.

(Photo credit: Apple)


BYD’s Acquisition of Jabil’s China Factory: Expanding Beyond iPhone Casings into EMS Orders

Last month, the primary iPhone casing supplier, American company Jabil, announced that it had reached a preliminary agreement with China’s prominent EMS (Electronic Manufacturing Services) firm, BYD, to sell its Mobile Business Unit for $2.2 billion. The completion of the subsequent transaction will depend on due diligence findings and final agreement terms.

TrendForce analysis reveals that as Jabil’s main focus in its Mobile Business Unit is iPhone casing manufacturing, the successful conclusion of this deal would leave iPhone casing supply primarily in the hands of Chinese and Taiwanese manufacturers, potentially bolstering China’s position in the supply chain.

Furthermore, BYD’s acquisition of Jabil’s China Metal Business not only marks its formal entry into the iPhone supply chain, expanding its presence, but also signals its aspirations to become a supplier in the iPhone assembly business.

Jabil’s main production facilities for its Mobile Business Unit are located in Wuxi and Chengdu, China. Wuxi primarily handles iPhone aluminum frame manufacturing, while Chengdu focuses on stainless steel components. This year, the iPhone 15 Pro features a titanium alloy frame for the first time, and Jabil is a key supplier for this component.

In terms of operational performance, Jabil’s Wuxi facility, due to its smaller scale compared to Foxconn and Lens Tech, and lower product prices, has underperformed expectations. Conversely, Chengdu, responsible for high-end metal components, has superior technical capabilities and better performance.

Considering Jabil Group’s global footprint and the configuration of its key customer supply chains, the company had been seeking a buyer for some time. Initially, Luxshare was a contender in the acquisition, but a consensus on the purchase price was not reached, leading BYD to secure the deal at a higher price.

TrendForce believes that BYD’s acquisition presents an opportunity to replicate Lens Tech’s experience in acquiring the Catcher’s Taizhou factory in 2020, becoming a direct supplier of iPhone casings. Given Jabil’s involvement in both high-end and low-end iPhone casing businesses, BYD might even be in a position to directly compete with Foxconn for high-end orders. This move would make it difficult for Lens Tech, which still lacks a high-end product line and advanced manufacturing processes, to join the ranks of high-end product suppliers.

In the long term, TrendForce believes that BYD, which is already an iPad EMS supplier, aims to leverage its position in critical components to venture into iPhone EMS business in the future, expanding its EMS business footprint.

(Photo credit: BYD)

  • Page 5
  • 9 page(s)
  • 45 result(s)