Guan Run- It will take several years for Hon Hai’s electric vehicles to grow, and the global market share target of 5% remains unchanged.

In an interview with Bloomberg Television ahead of Foxconn’s Tech Day on October 8, Kuan Run, Foxconn’s head of electric vehicle strategy, discussed the challenges the company faces due to a global slowdown in electric vehicle sales. He acknowledged that Foxconn’s late entry into the EV market means significant growth will take several years. However, he noted the strong progress the company is making in manufacturing and selling AI servers powered by NVIDIA chips.

Kuan pointed out the uncertainty in today’s business environment, emphasizing that “acting too quickly could be risky.” Consequently, Foxconn is adopting a cautious approach as it advances its electric vehicle initiatives. “We aim to be very strategic in our investments and development endeavors,” he explained.

With a rich background as the former Chief Operating Officer of the Renault-Nissan-Mitsubishi Alliance prior to joining Foxconn in 2023, Kuan will be showcasing the latest technologies alongside other executives, including several new vehicle models and a state-of-the-art $3 million NVIDIA AI chip server.

Discussing electric vehicle production, Kuan indicated that it will take approximately five more years for Foxconn to fully utilize the production lines at its Ohio facility, which it acquired from Lordstown Motors in 2022. This factory is set to become Foxconn’s main electric vehicle hub in the U.S., with an annual production capacity of up to 350,000 vehicles.

Still, Kuan reiterated Foxconn’s ambition to capture 5% of the global electric vehicle market by 2025, while also expressing a desire to expand the company’s footprint in markets beyond the U.S., particularly in Japan and the ASEAN region.

“We will never give up; achieving that 5% is our first critical milestone,” he stated, adding that the long-term goal is to reach over 40% market share in electric vehicles, akin to Foxconn’s dominance in smartphone manufacturing.

Moreover, Foxconn assembles NVIDIA’s graphics processors into ready-to-use modules, which enables bulk purchases for AI data center operators. This year, buoyed by the growing demand for AI, Foxconn’s stock has seen nearly a 90% increase, with the company recently announcing strong revenue performance for the third quarter.

A standout at Foxconn’s event today is the NVL72 system, which features dozens of next-generation Blackwell chips and has a valuation in the millions.