In a bid to diversify its business, Taiwan based multinational electronics contract manufacturer Foxconn Technology Group, has reportedly entered into a strategic manufacturing alliance with Chinese EV startup Byton Ltd.
Sources familiar with the development cited that Foxconn and Byton aim to initiate the mass production of Byton M-Byte by Q1 of 2022, supported by the Nanjing Economic & Technological Development Zone in China. Based on market speculations, it has been alleged that Foxconn intends to invest USD 200 million in the venture, though the information has not yet been made public.
Foxconn, also known as Hon Hai Precision Industry Co. Ltd., is the major supplier for smartphone giant Apple Inc. and depends on the latter for half its revenue. While the deal will enable Foxconn to make its debut in the car-making business, Byton will also benefit immensely, considering its struggle with production of the first concept car M-byte several years after the launch, cite the seasoned experts.
Reliable sources claimed that according to the strategic alliance, Byton will leverage Foxconn’s advanced manufacturing technology, supply chain resources, and operation management expertise. The M-byte model is speculated to reach 80% charge in 35 minutes, has a top speed of 190 kilometers per hour, and a distance range of 550 kilometers, as per the specifications on Byton’s website.
As tech giants across the globe shift their focus towards developing next-gen cars, alongside the smart technologies like car-to-car communication and autonomous driving, which are crucial to these automotive, Foxconn is also aiming to benefit from this sector. If the sources are to be believed, Apple Inc. is contemplating to develop its own self-driving car variant.
Young Liu, Chairman of Hon Hai Precision Industry Co., was quoted stating that the electric-vehicle business vertical will flourish in the first half of 2021.
Post the deal announcement with Byton, Hon Hai shares closed 8.6% higher, the largest one-day surge since April 2019.
Source Credits –
https://www.bloombergquint.com/business/foxconn-in-talks-with-chinese-ev-startup-byton-for-funding#