Slowdown in the EV market. Manufacturers prefer AI to electric vehicles

Luc Williams

Manufacturer of components for iPhonescompany Hon Hai claims that development EV industry will slow down. The Taiwanese component manufacturer is approaching the issue cautiously electric vehiclesbecause it sees a very uncertain business environment in which “fast movement can be dangerous,” commented Jun Seki, head of the electric vehicle division, in an interview with Bloomberg TV. “We want to be very smart in terms of investment and development,” he added.

Player on the electric car market

Seki, a Nissan Motor Co. veteran who has been named head of Hon Hai’s EV strategy in 2023. He said it would likely take about five years for the company to fully utilize its electric car production lines at the Ohio plant. It will be able to build 350,000. vehicles per year.

At the same time, Seki reaffirmed Hon Hai’s goal of contributing 5% of global electric vehicle production in 2025 and said that in addition to the US, it is interested in becoming a player in Japan and Southeast Asia. Ultimately, the company would like to be responsible for as much of the market share as Hon Hai has in smartphone production – 40% or more.

Apple gives up building EVs

So far, Hon Hai has only acquired corporate customers to produce electric vehicles in Taiwan. Apple also had automotive ambitions, but earlier this year it canceled its plans to build an iPhone on four wheels, writes Bloomberg.

In addition to electric vehicles, the Taipei-based company, also known as Foxconndevelops the production of AI servers. Activation ChatGPT By OpenAI in 2022 sparked a spending frenzy among major cloud service providers, from Amazon.com after Metachanging Hon Hai’s priorities and prospects. The Taiwanese company assembles highly valued graphics processors Nvidia into ready-made modules that AI data center operators can buy in bulk. That sent the company’s shares up nearly 90% this year, and on Saturday the company reported better-than-expected third-quarter sales.

About LUC WILLIAMS

Luc's expertise lies in assisting students from a myriad of disciplines to refine and enhance their thesis work with clarity and impact. His methodical approach and the knack for simplifying complex information make him an invaluable ally for any thesis writer.