Foxconn, a manufacturer of iPhones partners with chipmaker NXP semiconductors

Foxconn of Taiwan announced a partnership with NXP Semiconductors to create platforms for electric vehicles.

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As it enters the car industry, Taiwan’s Foxconn announced on Wednesday that it has joined up with chipmaker NXP Semiconductors to build platforms for electric vehicles, adding to a string of similar agreements.

Since establishing partnerships with US startup Fisker Inc. and Indian behemoth Vedanta Ltd., Foxconn, best known for producing Apple’s iPhone, has diversified into EVs and semiconductors.

Foxconn stated in a statement that it has signed a memorandum of understanding with NXP to work on EV platform development, describing the move as a “great opportunity” that would help it produce EV products more quickly and at a lower cost.

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The Taiwan-based business said that it will work with NXP to produce more than ten automated products, including next-generation EV platforms that would make use of NXP processors.

Chairman Liu Young-way of Foxconn pledged to lower manufacturing costs for the automotive industry with its assembly know-how as the largest contract electronics manufacturer in the world, stating that Foxconn aims to provide components or services to 10% of the world’s electric vehicles by 2025 to 2027.

In response to a global chip shortfall, the Taiwanese business has been looking to buy semiconductor factories all around the world. It said last week that a subsidiary had invested $798 million, making it a shareholder in the troubled Chinese chip firm Tsinghua Unigroup.