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iPhone maker Foxconn partners with chip maker NXP Semiconductors to develop EV platforms

Taiwan-based Foxconn said Wednesday it is partnering with chip maker NXP Semiconductors to develop platforms for electric vehicles, complementing the iPhone builder’s range of such deals as it enters the automotive market. Foxconn, best known for assembling iPhones for Apple, has expanded into areas such as electric vehicles (EV) and semiconductors in recent years, announcing deals with US startup Fisker Inc and Indian conglomerate Vedanta Ltd. In a statement, Foxconn said it has signed a memorandum of agreement with NXP to develop EV platforms, calling it a “great opportunity” that enhances its ability to quickly create EV products and reduce costs.

The Taiwanese company said it plans to build more than 10 auto products with NXP and will be in development soon, including next-generation electric vehicle platforms using NXP processors.

Foxconn aims to supply components or services for 10 percent of the world’s electric vehicles by 2025-2027, chairman Liu Yang-wei said, vowing to lower vehicle manufacturing costs with the know-how of the world’s largest contract electronics manufacturer.

The Taiwanese company sought to acquire chip factories around the world amid the global chip shortage. The company said last week that it had become a shareholder in Chinese chip conglomerate Tsinghua Unigroup, which invested $798 million (roughly Rs. 6,400 crore) in the subsidiary.

Earlier this month, Foxconn improved its full-year business outlook thanks to strong sales of smartphones and servers, despite concerns about slowing demand due to rising inflation.

Like other global manufacturers, the Taiwanese firm is facing a severe shortage of chips that has hurt smartphone production, including for its main customer Apple, due in part to China’s COVID-19 lockdowns.

But the company said in a statement that June sales jumped 31% year-over-year to hit a record high for the month, thanks to proper supply chain management and rising sales of consumer electronics. Smartphones make up the bulk of his income.

© Thomson Reuters 2022

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