In response to geopolitical shifts and evolving client demands, Foxconn has been investing heavily in manufacturing expansion across Vietnam, India, and Mexico. Meanwhile, its recent hiring drive in Zhengzhou, China, has sparked speculation that production issues at its Indian facilities may have prompted a renewed focus on Chinese operations. Foxconn, however, has clarified that this hiring is tied to seasonal shifts in production needs, denying any quality discrepancies between its Indian and Chinese plants.
Foxconn's Zhengzhou facility, established in 2010, has long been a major production site for Apple's iPhone, and the company remains deeply invested in China. While Apple has increased iPhone production in India — with a target of 25% of total iPhone output by 2028 — seasonal demand spikes, especially during new product launches, still drive recruitment at Zhengzhou. Foxconn's chairman has emphasized that Zhengzhou remains essential to the company's China operations and would not be abandoned lightly.
Looking ahead, Foxconn is doubling down on its Zhengzhou investments, particularly in electric vehicles (EVs). In early 2024, the company launched new operations in Henan Province, spanning EV parts, battery development, and full EV assembly. A strategic agreement signed with Henan authorities in July 2024 further supports these initiatives, setting a CNY1 billion (approx. US$136.94 million) investment to develop a new EV manufacturing hub in Zhengzhou's Zhengdong New Area.
Aligned with Foxconn's "3+3" industry growth strategy, the partnership focuses on EVs, to integrate the company's manufacturing and supply chain strengths. Zhengzhou's strategic emphasis on EVs aligns closely with Foxconn's plans, with the city's economic blueprint targeting 700,000 new EV units by 2024.
Foxconn's automotive ambitions have steadily taken shape. Through ventures with Byton, XPeng Motors, and CATL, Foxconn has moved toward establishing a comprehensive EV development and production model, focusing on contract design and manufacturing (CDMS) without building a proprietary EV brand. In 2021, Foxconn introduced its Model C, Model E, and Model T vehicles as a demonstration of its manufacturing capabilities, followed by additional launches to build credibility in the EV market.
Moreover, Sharp, a Foxconn subsidiary, recently debuted its first EV concept, the LDK+, in partnership with Foxconn and Kyoto-based EV startup Folofly. This initiative reflects Sharp's pivot from display manufacturing to automotive tech applications, including in-car displays and smart cockpits, leveraging Foxconn's production capabilities to expand in the EV industry.
Foxconn's strategy in China is not a retreat but a recalibrated focus on the country's burgeoning EV market. By combining Sharp's brand power with Foxconn's manufacturing expertise, the company aims to firmly establish itself in the evolving automotive landscape.
