According to DIGITIMES, Foxconn Technology Group Chairman Young Liu called for closer Taiwan-Japan collaboration in electric vehicle development at the Nikkei Forum in Tokyo. He outlined Foxconn’s strategy to remain a manufacturing service provider rather than a branded automaker while diversifying production away from China. The company has reduced China’s share of its total output from nearly 100% three decades ago to about 65% today by expanding to India, Vietnam, and Mexico. Liu also revealed Foxconn now categorizes AI into two areas: generative AI for daily functions and disruptive AI that reshapes business models. He specifically praised the synergy between Taiwan’s ICT sector and Japan’s automotive precision for next-generation EV production.
<h2 id="foxconns-manufacturing-shift”>The great decoupling from China
Here’s the thing about Foxconn’s China reduction – this isn’t some recent geopolitical pivot. Liu says they saw this coming several years ago. They noticed developing economies expanding while underdeveloped ones contracted, which basically meant every country started prioritizing their own domestic prosperity. So regional production became the new normal.
But let’s be real – moving from nearly 100% China production to 65% is massive for a company of Foxconn’s scale. That’s billions of dollars in manufacturing capacity shifting to India, Vietnam, and Mexico. And the factors driving these decisions? Labor availability and government policy, plus consultations with key clients. It’s not just about finding the cheapest labor anymore – it’s about building resilient, politically acceptable supply chains.
How AI is changing everything
Now this is interesting – Foxconn is basically splitting AI into two buckets. There’s the generative AI stuff that handles meeting transcription, translation, and data collection. You know, the productivity tools that make daily operations smoother. But then there’s what they’re calling “disruptive AI” – the kind that can fundamentally reshape business models.
Think about that for a second. We’re not just talking about AI making existing processes more efficient. We’re talking about AI that could completely change how Foxconn designs, manufactures, and even conceptualizes products. That’s the real game-changer, and it’s probably why Liu is so focused on this transformation.
Why this Taiwan-Japan EV partnership makes sense
Liu’s vision for a Taiwan-Japan EV alliance actually has some solid logic behind it. Taiwan brings that agile, fast-moving ICT (information and communications technology) expertise – they know how to iterate quickly and scale tech manufacturing. Japan brings decades of automotive precision and quality control. Put them together and you theoretically get the speed of a tech startup with the reliability of an established automaker.
And Foxconn’s positioning here is smart. They’re not trying to become the next Tesla or Toyota. They want to be the manufacturing partner for everyone – both traditional carmakers trying to go electric and new EV startups that need production scale. With their experience making everything from iPhones to servers, they’ve got the manufacturing chops to pull this off.
The mention of Sharp’s concept vehicle at the 2025 Japan Mobility Show shows this isn’t just talk. Foxconn already has skin in the game through its Sharp subsidiary. So when Liu talks about deepening partnerships with Japanese automakers, he’s building on existing relationships rather than starting from scratch.
Basically, Foxconn is betting that the future of EV manufacturing looks more like electronics than traditional auto-making. And if that’s true, their experience gives them a serious advantage. The question is whether Japanese automakers, with their deeply ingrained manufacturing cultures, will fully embrace the Taiwanese approach. That cultural and operational blend could be either the secret sauce or the biggest challenge.
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