Foxconn Unit – Hon Teng Targets The Booming Autonomous Car Market
FIT Hon Teng, a unit of the world’s biggest contract electronics maker – Foxconn Technology, revealed that it has a formed a joint venture with Japan’s Sharp Corporation to manufacture components for self-driving cars. The company said the venture with Sharp – which Foxconn bought in August 2016 for US$3.8 billion – would make automotive cameras and electronic mirrors. It will be based in Singapore.
The venture represents the latest foray by the Foxconn group into the booming market for autonomous cars. Last year, a study by chip maker Intel and research firm Strategy Analytics predicted the market for driverless vehicles would reach US$800 billion in 2035 and US$7 trillion by 2050.
Automobile manufacturers are already equipping their products with advanced driver assistance systems, of which automotive cameras and electronic mirrors are indispensable hardware components
FIT Hon Teng will invest 1.541 billion yen (US$14 million) for a 51 per cent stake in the venture, while Sharp will commit 1.481 billion yen for the rest. Foxconn, also known as Hon Hai Precision Industry, last week led a US$348 million funding round with Chinese internet firm Alibaba Group Holding in Xiaopeng Motors, a Chinese start-up that develops autonomous driving systems, internet connectivity and electric cars.