Foxconn and NXP Semiconductors today jointly announced the signing of a Memorandum of Understanding (MOU) to develop a next-generation smart connected vehicle platform in partnership. Foxconn Chairman Young Liu and NXP President and CEO Kurt Sievers connected to the signing site from Taiwan and Germany respectively through video conference to complete the signing of the memorandum.
The core of the strategic partnership between the two parties will integrate the NXP S32 series processors into the Foxconn electric vehicle platform. The platform uses the NXP S32 series processors combined with its analog-front-end, driver, network, and power products. The scope of cooperation will involve whole vehicle electronic applications.
Young Liu, chairman of Foxconn, said that Hon Hai sees the disruptive challenges and innovation potential facing the current vehicle industry, the professional knowledge and capabilities of the information and communication industry, and will play a key role in the vehicle industry in the future. NXP's expertise and leadership in the automotive field, innovative products, as well as a strong focus on safety, security, and quality, lay the foundation for cooperation between the two parties.
Kurt Sievers, President and CEO of NXP Semiconductors, said that NXP can extend and expand its technology product lineup to develop automotive electrification, next-generation electronic and electrical architecture, smart car access control, and other fields, and partner with Foxconn to meet the challenges and opportunities of the next generation of smart connected cars and especially to assist Foxconn in launching a new electric vehicle platform.
Jerry Hsiao, chief product officer of Foxconn, said that the two parties will cooperate in the aspects of "complete vehicle design," covering 2 major platforms and 7 major application fields such as electronic and electrical architecture (EEA) and vehicle cybersecurity. The first phase of cooperation on more than 10 automotive products have been planned, including chassis, cockpit experience, etc.
Jerry Hsiao pointed out that Foxconn has actively entered the electric vehicle industry and proposed a new business model involving an EV open platform, providing a full range of solutions from vehicle design, components, modules, software, to EEA architecture, etc. The BOL cooperation model creates a win-win situation for all partners and has received a very large response.
Jerry Hsiao explained that the comprehensive cooperation between Foxconn and NXP will speed up the launch of more competitive products by Foxconn, increase its speed to market, save on investment of R&D resources, and integrate the silicon wafer industry in the field of automotive semiconductors, while investing in the development of SiC compound semiconductors, which will be a key advantage of Foxconn in the EV industry and will also create a larger competitive niche for customers.
Jerry Hsiao emphasized that in the past, the market would be broken up, mainly because world supply chains were mostly disjointed. The team signed a strategic alliance with NXP to stabilize the supply source of vehicle parts and systems in the future. Foxconn, a car factory, and NXP, a strategic partner, jointly divide labor and cooperate across departments in the automotive field to provide a safer user experience in the supply chain.
The products jointly developed by Foxconn and NXP will jointly explore new markets in the future and NXP will also be the preferred supplier for Foxconn when developing related products in the automotive field. Foxconn will integrate NXP's solutions and produce more in line with the module products required by customers that can increase revenue contribution and NXP can be closer to end customers and provide more products that meet customer needs.