The Apple Inc. (NASDAQ:AAPL) iPhone supplier Hon Hai Precision Industry Co., Ltd. (OTC:HNHPF), popularly known as Foxconn, has confirmed that it will begin to manufacture electric vehicles in North America by 2023, Nikkei reported, citing a press briefing by the company's Chairman Young Liu in Taipei.
The possible locations are Wisconsin in the U.S. or Mexico, Liu reportedly said.
The Taiwanese contract manufacturer has plants in either location. The Wisconsin plant, where construction began in June 2018, was initially intended to manufacture displays.
Foxconn's chairman said Tuesday the company will finalize what products are manufactured at the Wisconsin plant by July.
Wisconsin may be ideal for manufacturing EVs given its proximity to the auto supply chain in the U.S., Liu said.
The availability of engineering and labor resources could be the main criteria in the decision, he said.
"But my priority is whether making this product here is right for the business," the Foxconn exec said. "The incentives will not sustain [our operation] if the products are not the right ones to be made there."
Foxconn is reportedly eyeing investments of $354 million every year for the next three years, with the majority going into EV manufacturing.
The Apple supplier, though suggesting it is in talks with U.S. EV makers with which it still doesn't have a relationship, shrugged off rumors regarding joining hands with Apple for an EV venture.
Why It's Important: Foxconn, which derives almost all of its revenues from consumer electronics, is looking to diversify its revenue stream.
Foxconn has announced a slew of deals recently to nurture its EV ambitions. At the start of the year, it signed a manufacturing deal with China's Byton for the mass production of the latter's M-Byte by early 2022.
Immediately after, Foxconn clinched a partnership with Chinese automaker Geely Automobile Holdings Limited (OTC:GELYF) to provide production and consulting services to global automotive enterprises.
Foxconn is also promoting its MIH software and hardware open platform, which is designed to make it easier and faster for automakers to turn out cars.