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Reference News reported on August 16 According to a report on the website of the New York Times on August 14, the core business of Taiwan's electronics giant Foxconn is located in Zhengzhou, the capital of Henan Province in central China, a city also known as "iPhone City". There is a network of suppliers, related infrastructure and factories, as well as Foxconn employees who sometimes number up to 250,000 people, producing most of the iPhones sold worldwide for Apple.

Now, Foxconn is planning to build a new 700-acre (283-hectare) campus in Zhengzhou to produce electric vehicles, among other things.

The question is, who will be the customer?

In February, Apple canceled its long-planned electric car development project after investing more than $10 billion. Many of its competitors in China have already pulled ahead.

For Foxconn, the investment in Zhengzhou is part of a broader effort to reduce its reliance on Apple.

Foxconn plans to build cars designed and sold by other companies, just as it makes iPhones for Apple Inc. So far, Foxconn has won an order from Luxgen, a subsidiary of a Taiwanese automaker, with which it will build a small number of buses and cars.

"They need to make a breakthrough, which means finding a big customer," said Yang Yingchao, chairman of private equity firm Kirkland Capital.

Foxconn aims to become a major player in this highly competitive industry.

In China, the lines between smartphone makers and auto companies are blurring.

Huawei and Xiaomi, two of China's best-selling smartphone brands, have already started selling electric vehicles.

Foxconn executives say its manufacturing capability to produce iPhones faster and at lower cost than its competitors will translate into success in the auto industry.

This includes the company's established manufacturing capabilities and government support in Zhengzhou.

But some analysts question whether Foxconn's manufacturing capabilities are enough to help it stand out in China's highly competitive market.

"What will lead Chinese electric vehicle manufacturers to win in the market is not necessarily manufacturing capabilities, but more importantly the software and technology they provide to consumers," said Dai Jiahui, a former senior executive at Ford Motor Co.'s Asia-Pacific business.

When it comes to cars, reliability and safety are as important to consumers as low prices. "If a consumer electronic device crashes, it's just a crash," Yang said, "but a car failure can be fatal."

Foxconn has invested heavily in electric vehicle-related manufacturing in Southeast Asia.

Foxconn has produced a small number of electric buses at an old GM plant in Ohio that it bought from Lordstown Motors, which filed for bankruptcy last year.

In 2021, Foxconn formed a joint venture with Taiwanese automaker Yulon Motor to produce luxury sedans, SUVs and buses. Foxconn said recently that it has delivered 5,400 vehicles to Yulon this year.

So far, Foxconn's limited production is far from enough to compete with China's leading electric vehicle manufacturers. (Compiled by Guo Jun)