One of Apple Inc's (NASDAQ: AAPL) oldest and largest suppliers, Foxconn, has forayed into the electric vehicle segment.
What Happened: The key iPhone assembler, whose official name is Hon Hai Precision Industry Co., Ltd (OTC: HNHPF), broke ground on its first battery cell plant on Wednesday, the latest move by the company to make inroads into the booming EV industry.
"We plan to build a localized ecosystem for the battery supply chain, from materials to battery cells and battery packs, in Kaohsiung," Foxconn Chairman Young Liu said at the groundbreaking ceremony in the southern Taiwanese city, according to Nikkei Asia.
"The city will become an important base for Foxconn's EV global footprint."
The move comes days after he said the company aimed to become the first EV maker that is "not short on material supplies."
"A car that costs tens of thousands of dollars cannot be shipped because of a tiny chip worth fifty cents. This has been a pain for our customers," he had said.
The company aims to capture around 5% of the global EV market by the end of 2025.
Price Action: According to data from Benzinga Pro, OTC shares of Foxconn closed 1.09% higher at $7.40 on Tuesday.
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