Foxconn Diversifies Beyond Smartphones in Strategic Expansion

Foxconn Technology Group, the world’s largest contract electronics manufacturer and key Apple supplier, is undergoing a significant transformation. The company is shifting its focus beyond smartphones, leveraging the AI boom and expanding into electric vehicles (EVs) and AI server production. This strategic pivot marks a milestone for the Taiwanese giant, as it increasingly earns more from servers than traditional smartphone manufacturing.
In recent years, Foxconn has made substantial moves into the EV sector, striking deals with Mitsubishi Motors to develop and supply electric vehicles for markets in Australia and New Zealand. Additionally, the company has expressed interest in Renault’s stake in Nissan, signaling its intent to deepen ties with automotive players. These ventures align with Foxconn’s broader goal of diversifying its revenue streams and reducing reliance on the smartphone market.
Geopolitical shifts and trade policies have also influenced Foxconn’s strategy. The company has expanded its production footprint, with new facilities in Mexico and India, reflecting a broader trend of supply chain diversification away from China. This “nearshoring” approach aims to mitigate risks associated with geopolitical tensions and tariffs.
Despite these efforts, Foxconn faces challenges, including regulatory scrutiny in China and adapting to rapidly changing global trade dynamics. However, the company’s diversification into high-growth sectors like AI and EVs positions it as a key player in the evolving tech landscape.

Published: 8/14/2025