Foxconn plans to invest $2-3 billion annually in AI, with Chairman Young Liu expecting a shakeout in China’s EV market. AI will dominate investments, accounting for over half of Foxconn’s $5 billion annual capital expenditure. The company’s cloud and networking business, including AI servers, has surpassed consumer electronics in revenue. China’s EV sector faces fierce competition and likely consolidation as unprofitable startups disappear due to limited government support. Top EV maker BYD reported a significant profit drop and reduced its 2025 sales target to 4.6 million vehicles.

Foxconn is discussing potential investments in AI and EV with the Japanese government, considering local manufacturing for data sovereignty. The company is delaying its goal to capture 5% of the global EV market by 2025 due to a slowdown in demand, focusing on expanding in EVs, quantum computing, and robotics. Liu compares the EV sector to the early PC industry, anticipating a shift to outsourcing as competition intensifies.

Read more at Yahoo Finance: Foxconn to spend up to $3 billion a year on AI, chair sees China EV shakeout