Foxconn is expected to announce a partnership with a second Japanese automaker, according to chairman Young Liu.

Liu made the statement during an event in Taipei on May 29, 2025.

Earlier in May, Foxtron Vehicle Technologies, a Foxconn subsidiary, signed a memorandum of understanding with Mitsubishi Motors.

This agreement involves the supply of a new electric vehicle model.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Foxconn’s contract manufacturing pivot mirrors tech industry evolution

Foxconn’s expansion into EVs represents a strategic application of its established electronics business model to a new industry, aiming to become the “Android of EVs” through its open MIH platform 1.

The company produced approximately 40% of global consumer electronics as of 2012, providing manufacturing services for Apple, Microsoft, and Sony, giving it unparalleled scale experience it hopes to leverage in automotive production 2.

This approach contrasts with traditional automakers’ vertically integrated manufacturing but aligns with shifts toward modular vehicle design and specialized production happening across the automotive industry 3.

Foxconn’s dedicated EV division established in Zhengzhou signals a formal commitment to this strategy, with concrete goals to embed its technology in 5% of all electric vehicles globally by 2025 4.

The contract manufacturing model could potentially lower barriers to entry for new automotive brands while accelerating production capabilities for established automakers seeking to expand EV offerings quickly.

2️⃣ Japan strategy offers mutual benefits amid shifting EV landscape

Foxconn’s focus on Japanese partnerships comes as Japan’s automakers face mounting pressure from Chinese EV manufacturers gaining global market share 5.

The Mitsubishi Motors memorandum of understanding represents a foothold in Japan’s automotive industry, with reports indicating potential outsourcing of EV production for Oceania markets to Foxconn 5.

For Japanese automakers, Foxconn offers manufacturing efficiency and electronics expertise; for Foxconn, these partnerships provide automotive credibility and technical knowledge they currently lack 6.