Apple supplier Foxconn seeks to capitalize on the booming electric vehicle industry with its upcoming Chinese production hub that will cater to “well-known domestic and foreign automobile brands,” South China Morning Post reported.
Foxconn breaks ground on new EV plant in Zhengzhou
Hon Hai Technology Group announced that its electronics business unit, Foxconn, has signed a strategic cooperation deal with the government of Henan province.
As per the agreement, the Henan government will support Foxconn’s plans to build a new headquarters in the capital.
As a result, Foxconn formally broke ground on its “trial” electric vehicle factory in Zhengzhou city as it seeks to emulate its success as Apple’s major iPhone contractor for electric cars and other tech development.
The facility will reportedly have a high-end demonstration NEV production line. In addition, it will act as a showcase platform offering manufacturing services to prominent automakers in and beyond China.
Project details
As part of the agreement, Foxconn will invest a whopping 1 billion yuan ($137.5 million) for the development of the new business headquarters in Zhengzhou.
Phase I will rise in Zhengdong New Area, covering an area of approximately 700,000 square meters.
The upcoming HQ will consist of seven key centers, including the following:
- headquarters management center
- R&D and engineering center
- strategic industry development center
- strategic industry financial platform
- industry research institute and key talent center
- marketing center
- supply chain management center
Foxconn’s “3+3” strategy
Foxconn outlined that the strategic cooperation with the government of Henan province will revolve around the undertaking of its “3+3” strategy.
For context, it includes the advancements in three emerging industries: electric vehicles, digital health, and robotics. The other three cover three new technology fields: artificial intelligence (AI), semiconductors, and next-generation mobile communications.
This strategy encompasses Foxconn’s primary goal of establishing a global high-end manufacturing industrial chain and an ecosystem for emerging strategic industries.
Foxconn expects its new electric vehicle prototyping center to establish the Zhengzhou Airport Economy Zone as the core production base for its NEV business.
