Foxconn is to acquire 50 percent of ZF Group’s axle assembly unit, expanding its chip-making presence in the automotive industry.
The deal values ZF Chassis Modules at 1 billion euros (7.9 billion yuan, US$1.1 billion). The company specializes in assembling axle systems for passenger cars and operates in 25 locations worldwide and expected sales of over 4 billion euros this year.
Since the phone market stopped expanding, Foxconn has been investing in EVs, establishing a new business in Zhengzhou to work on EVs, health and robotics.
Foxconn’s journey into the automotive industry has faced challenges. Investment in American EV startup Lordstown Motors led to disputes which in turn led to Lordstown Motors filing for bankruptcy protection.
