In February this year, the Financial Times reported that Apple ended talks with Japan’s Nissan about a partnership for its secretive autonomous car project after the two sides failed to reach an agreement on branding.

Apple also ended talks with South Korea’s Hyundai Motor and its affiliate Kia as part of an effort to find an automotive partner for its car efforts, known as Project Titan, according to the FT report.

Taiwanese are the only likely manufacturing partners for Apple in the EV business, according to Huang.

“Other people in the world care more about their franchise and their brand equity. Taiwanese don’t care about brand equity at all.”

It’s a new chance for Foxconn to develop low-cost modules for electronics brand owners in much the same way as the company started making laptop computers for Apple and Dell decades ago. The difference is that this time, Foxconn aims to provide more value added with advanced display technology that comes from its recent acquisition of Sharp, for example, according to CLSA analyst Chen. That added value will improve the profit margin for Foxconn in the EV business, he says.

While Taiwanese companies don’t have a significant presence in the EV business today, they have considerable potential, according to FCC Partners’ Huang.

“EVs are very different from traditional automobiles, where it’s mainly mechanical engineering. In the case of EVs, two-thirds of the components are electronic. And that is what Taiwanese are especially good at.”

By: DocMemory
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