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Taiwan’s Foxconn to work with 100 Japanese companies in EV push

Approximately 2,200 companies taking part in Foxconn’s EV project

Foxconn building. (Reuters photo)

Foxconn building. (Reuters photo)

TAIPEI (Taiwan News) — Around 100 Japanese companies will take part in the joint development of electric vehicles (EVs) being led by Foxconn.

Around 2,200 companies are expected to participate in the EV project as of early March, Nikkei reported. The total number of companies has jumped 70%, while the number of Japanese firms has gone up fivefold compared to last April when Foxconn first announced the project, according to the report.

NSK, Nidec, and other car parts makers will play a part in Foxconn’s program, as well as materials and electronics companies, including Showa, Denko, Asahi Kasei, and Toshiba.

Firms with close business ties to major Japanese automakers will also be involved, including Toyota suppliers Denso, Toyota Tsusho, and JTEKT, in addition to FCC, which works with Honda Motor Company. Denso is looking to provide motors and other equipment, while Toyota Tsusho is involved in developing lithium resources for car batteries and is thought to be mulling raw materials and parts trading, Nikkei said.

Foxconn, the world’s largest contract electronics manufacturer, first announced its EV plan in October 2020. The plan has a core group of firms jointly developing EV chassis and communications systems, while other companies will sell components and systems for EVs made under contract by Foxconn and freely utilize design information, according to Nikkei.

The Taiwanese company intends to provide basic software and chassis blueprints for automakers, which can then modify the EVs for their specific markets. Outsourcing EV assembly to Foxconn will let carmakers sell their own brand without the need to build an entire plant.

Because EVs do not use conventional engines, the number of parts used in production is reduced by 40% to 50%, which simplifies manufacturing. EV sales are expected to grow sevenfold to about 33 million vehicles in 2030 compared to 2021, Nikkei cited U.K. research firm LMC Automotive as saying.