Nidec Corporation, the world’s largest manufacturer of drives, has agreed to start discussions on establishing a joint venture with Hon Hai Technology Group and Foxtron Vehicle Technologies.
The Hon Hai Technology Group in Taiwan has been the main manufacturer for Apple products in the past two decades.
Nidec signed a memorandum of understanding with Foxtron regarding its strategic alliance in the development of electric vehicle drive systems.
Foxtron and Nidec have continued joint development to supply products equipped with Nidec’s traction motor system E-Axle for customers all over the world.
Moving forward to prepare the productions further, Hon Hai/Foxtron and Nidec have come to consider establishing the joint venture.
The joint venture aims to ensure a stable supply of traction motors and other automobile motors for Hon Hai/Foxtron, and to expand sales opportunity of new markets and customers for Nidec.
Also, the company expects that the joint venture will greatly contribute to the business expansion and growth of all companies related to the joint venture.
The three companies’ agreements regarding the joint venture as of now are as follows;
- Hon Hai/Foxtron and Nidec will conduct feasibility studies and contract negotiations with the aim of concluding a joint venture establishment agreement by the end of December 2021.
- The joint venture will be headquartered in Taiwan and will be established within 2022. In addition, the main business of the joint venture will be on the development, production and sales of traction motor systems and various motor-related products for automobiles.
- Other details will be decided in future discussions between the three companies. It may be partially changed by discussion.
It is an important initiative for the Company to start full-scale sales to customers in the automobile markets from different industries.
The company would like to learn Hon Hai’s global supply chain operation and management, as well as the manufacturing and technical strength accumulated in the ICT field in the past few decades; and also learn Foxtron’s know-how cultivated through the development experience of electric vehicles and Open EV Platform.
By collaborating with Hon Hai/Foxtron, Nidec would like to further evolve Nidec’s strengths of lightness, thinness, shortness and small and high efficiency.
Nidec is confident that the establishment of the joint venture will be an important step in building the Company’s foundation for traction motor production target of 10 million units in 2030.