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Following the unveiling of Foxconn’s new business headquarters in Zhengzhou, capital of Henan Province in April 2023, Foxconn has made significant progress in its “car manufacturing” layout in Henan.

On the morning of July 24, Hon Hai (2317.TW) announced on the Taiwan Stock Exchange that its subsidiary Foxconn Technology Group signed a strategic cooperation agreement with the Henan Provincial Government.

According to the agreement, the Henan Provincial Government supports Foxconn in building a new business headquarters in Zhengzhou. Foxconn will give full play to its core competitiveness in the field of smart manufacturing, as well as its global technical reserves and industrial chain resource advantages, accelerate the implementation of electric vehicle, energy storage battery, digital health and robot industries, focus on Henan, and build a global high-end manufacturing industry chain and strategic emerging industry ecosystem.

Foxconn's car manufacturing in Henan has made further progress

According to an announcement released by Hon Hai on the morning of the 24th, Foxconn will invest in the construction of a new business headquarters building in Zhengzhou to serve as the headquarters of the new business.The first phase of the project is located in Zhengdong New District, with a construction area of ​​about 700 mu and a total investment of about 1 billion yuan. It mainly builds seven centers, including the headquarters management center, R&D center and engineering center, strategic industry development center, strategic industry financial platform, industry research institute and key talent center, marketing center, and supply chain management center, which will provide industrial resources, technical strength and other related support for Foxconn to implement the 3+3 strategy in the mainland; at the same time, around the implementation of the 3+3 strategy, Foxconn will focus on the layout of electric vehicle trial production center, solid-state battery and other projects in Zhengzhou Airport Economic Comprehensive Experimental Zone.

According to the Henan government website, on July 22, the Henan Provincial People's Government signed a strategic cooperation agreement with Foxconn Technology Group in Zhengzhou. Provincial Party Secretary Lou Yangsheng attended the signing ceremony and witnessed the signing of the cooperation agreement. Governor Wang Kai and Foxconn Technology Group Chairman Liu Yangwei signed the agreement on behalf of both parties.

Afterwards, Wang Kai also attended the launch ceremony of Foxconn's new business series investment projects and the groundbreaking ceremony of the new energy vehicle pilot production center held in Zhengzhou Airport Economic Zone on July 23.

Wang Kai said that in recent years, the Henan Provincial Party Committee and the Provincial Government have attached great importance to Foxconn's development in Henan, and the strategic cooperation between the two sides has continued to deepen. The signing of this agreement marks that the cooperation between the two sides has entered a new stage. It is hoped that Foxconn will firmly believe in investing in Henan, focus on the cultivation of new industries and the research and development of new technologies, accelerate the early construction and effectiveness of signed projects, sign and start projects under discussion early, and jointly build a high-end manufacturing industry chain and a strategic emerging industry ecosystem. Further expand the industrial layout in Henan, promote the agglomeration and development of various industrial sectors, continuously open up new fields and new tracks, accelerate product iteration and upgrading, and build a complete industrial ecology. Henan will focus on building a normalized docking mechanism, strengthen all-round service guarantees, and create a better environment for the development of Taiwanese enterprises in Henan.

Liu Yangwei also stated that Foxconn attaches great importance to cooperation with Henan, and will continue to take root in Henan and deepen its development in Henan, deepen cooperation between the two sides in new technologies, new fields and new tracks, and contribute more to the construction of a modern Henan.

We have been in Henan for many years

Since the establishment of the Foxconn factory in Zhengzhou in 2010, Henan has been an important production base of Foxconn in the mainland.

The Zhengzhou Airport Economic Zone, with Foxconn's Zhengzhou factory as its core, has now become an important global production base for Apple mobile phones, and has formed an electronic information industry cluster based on this.

Foxconn started its plan to develop emerging industries in Henan last year.

In April 2023, at the unveiling ceremony of Foxconn’s new business headquarters in Zhengzhou, Liu Yangwei, chairman and general manager of Foxconn Technology Group, stated that he would "focus on strategic industries and build a new Foxconn in Henan Province."

Securities Times e-company reporter learned from Foxconn sources at that time that in June 2023, Foxconn's new business headquarters had begun recruiting in Zhengzhou around the two major business segments of EV (electric vehicles) and batteries. Most of the EV recruitment positions involve the entire vehicle manufacturing chain, covering multiple links including brakes, power circuits, steering, power batteries, interior styling, power motors, vehicle cooling, suspension, gears and transmission. In the battery business sector, Foxconn's new business headquarters also set up multiple positions including plant construction supervisors, energy storage and passenger car battery pack business managers.

At the beginning of this year, Foxconn New Energy Automobile Industry Development (Henan) Co., Ltd. was established. According to the Qichacha APP, the legal representative of the company is Huang Yingshi, with a registered capital of 500 million yuan. The business scope of the newly established company not only covers the manufacturing of auto parts and accessories, motor manufacturing, general parts manufacturing, auto parts research and development, and new material technology research and development, but also involves the sales of new energy vehicles and wholesale of auto parts. Equity penetration shows that the company is wholly owned by Foxconn New Business Development Group Co., Ltd.

Foxconn also responded to the Securities Times e-company reporter, "According to the group's 3+3 strategic industry plan, in 2023, Foxconn Technology Group will establish Foxconn New Business Headquarters in Zhengzhou and establish Foxconn New Business Development Group Co., Ltd. to coordinate the development of new industries including new energy vehicles and batteries. The newly established Foxconn New Energy Vehicle Industry Development (Henan) Co., Ltd. under Foxconn New Business Development Group will further focus on the new energy vehicle industry and accelerate the implementation of projects."

Henan's new energy vehicle industry chain is accelerating its construction

As a major transportation hub in central China, Henan has built a new energy vehicle industry chain "circle of friends" that includes not only Foxconn.

Just on July 20, the battery factory of the first phase of CATL's Luoyang base project was officially put into production, and the first Kirin battery was packaged in Luoyang. In addition, the second phase of CATL's Luoyang base project has started construction to further expand the production capacity of high-end new energy batteries.

It is understood that CATL's "Luoyang Zhongzhou Times New Energy Production Base Project" is located in Yibin District, Luoyang City. The project has a planned land area of ​​1,700 mu and is mainly used to build various components in the field of new energy vehicle batteries. The first phase of the project has an annual production capacity of 30GWh and will start construction in September 2022; the second phase of the project has an annual production capacity of 30GWh and will start construction in May 2024.

In addition, as an important production base for BYD's mid-to-high-end models in the central region, Zhengzhou BYD started the project 37 days after signing the contract in September 2021, and put it into production smoothly in 17 months.

On July 19, 2023, the first batch of mass-produced Haibao DM-i vehicles rolled off the assembly line, becoming the first new model put into production by BYD Zhengzhou. Thereafter, on September 27, 2023, the first batch of mass-produced vehicles of Chengfang Bao Automobile's first model "Leopard 5" officially rolled off the assembly line, and began to be delivered on November 24, becoming the second new model put into production by BYD Zhengzhou.

In November 2023, the 6 millionth BYD new energy vehicle rolled off the production line at the BYD production base in Zhengzhou, which also means that BYD became the world's first automaker to achieve the production of 6 million new energy vehicles.

In 2022, the General Office of the Henan Provincial People's Government issued the "Guiding Opinions on Further Accelerating the Development of the New Energy Vehicle Industry", with the goal of exceeding 1.5 million new energy vehicles in the province by 2025, accounting for more than 40% of the province's automobile production, and striving to build a 300 billion-level new energy vehicle industry cluster, striving to promote the province's automobile output value to 500 billion yuan, parts and supporting output value to 500 billion yuan, and sales and value-added service operating income to 500 billion yuan.

Recently, the General Office of the Henan Provincial People's Government issued the "Several Measures to Solidly Promote the Steady and Positive Economic Development in the Second Half of 2024", which also proposed that Henan will seize the new track of key industrial development. The provincial new energy vehicle research institute will be established, new models such as Zhengzhou BYD new energy pickup trucks and SAIC Zhengzhou "Smart" will be launched, and new energy battery bases such as Luoyang Zhongzhou Times and Jiaozuo Do-Fluoride will be built, striving to produce more than 1.5 million vehicles a year, including more than 800,000 new energy vehicles.

In addition, Henan will comprehensively promote large-scale equipment renewal and consumer goods trade-in. Special plans will be issued in the fields of transportation, education, etc., and fiscal policies for large-scale equipment renewal and consumer goods trade-in will be thoroughly implemented. The application process and use methods of subsidy funds will be further optimized, and support will be provided to guide key industrial chains to accelerate the level of digitalization and green development, and promote breakthroughs in key areas such as new energy substitution for heavy-duty freight vehicles. Three major projects will be thoroughly implemented: trade-in for cars, trade-in for home appliances, and "renewal" for home decoration, kitchen and bathroom.

Editor: Peng Bo

Proofreading: Tang Haocheng