Hon Hai Technology Group, widely known as Foxconn, has announced a partnership with the Sonora state government in Mexico, signing a memorandum of understanding (MOU) to collaborate on smart city development. Drawing from its work in Kaohsiung, Taiwan, Foxconn will introduce smart city solutions to Sonora using its Build-Operate-Localize (BOL) business model to work with local stakeholders.
The MOU outlines plans to focus on transportation, public safety, and port management, aiming to improve digital services for residents, businesses, and government. Sonora Governor Alfonso Durazo Montaño said the partnership aligns with the state's push to lead Mexico's electric mobility sector and advance AI applications. "This supports our innovation goals and contributes to a better future for families," he said, noting potential ties to President Claudia Sheinbaum's "Proyecto Olinia" for electric vehicles, batteries, and buses.
Foxconn Chairman Young Liu described Sonora as the company's first overseas smart city project, building on its Kaohsiung platform. "We're open to exploring further opportunities under Proyecto Olinia," Liu added. In Kaohsiung, Foxconn's CityGPT platform collects data via electric buses and vehicles to support services like smart transportation and tourism, while aiding government efficiency. The MOU was signed by Foxconn's Mexico representative, Lan Tzu-hsiang, with Liu present.
This move reflects Foxconn's broader shift in strategy, as outlined recently by Liu. He noted Taiwan's strength in hardware—where Foxconn holds a 40% share of global consumer electronics—but pointed out its weaker software development. Despite hardware success, profit margins remain slim, around 6%. Liu sees software as key to improving this, pushing Foxconn to evolve from hardware manufacturing to a platform-service model integrating hardware and software.
While platforms for PCs and smartphones are saturated, Liu views smart cities as a timely opportunity. He argued that current urban applications often operate independently, lacking a unified platform to connect governments, industries, and citizens—making smart cities a strategic focus for Foxconn's transformation.
Credit: Digitimes
Article edited by Joseph Chen
