Since the software aspect of auto manufacturing has been increasingly relevant throughout the evolution of the two most important trends in the auto sector, automation and electrification, it has become of the utmost importance to keep improving the energy efficiency of the prospective EV models in terms of energy conservation, aerodynamics and weight. Looking at the electronics manufacturing model, the implementation of modular architecture would unleash the potential for software development to reach new heights of user experience. This would take for most automakers to adopt common software and hardware platforms, the same way that the consumer electronics sector did with the eruption of the smartphone. Foxconn aims to provide the final strike to turn EV manufacturing upside-down, from hardware-based to software-based models.
One of the first tangible contributions of the MIH alliance, launched by Foxconn, is its first modular and scalable EV powertrain, which would be the same in essence for every type of car in the market and being able to fit the specific components of every carmaker regardless of its specifications. This piece of hardware has been designed thinking on the software that is supposed to use, and the foreseeable software need to advance in electrification and automation trends. Also, the MIH alliance has created an open platform, which would offer a common ground for traditional automaker developers to create a detailed driving experience. This openness in hardware and software development would turn Foxconn into the Android of EVs, in a paradoxical twist.
Given the modular nature of the MIH platform and this being software oriented, this would simplify the supply chain even further as the traditional automakers would be less reliant on specific parts from specific suppliers. Also, software adjustments to implement new technologies as electrification and automation progresses, are much easier to be carried out thanks to the openness of its platform. In terms of supply issues, the current shortage in semiconductors and the toll it’s taking on auto production, has exposed some of the shortcomings of the traditional automotive manufacturing model. Therefore, this factor seems to also play in favor of Foxconn in its incursion into the automotive sector as the Taiwanese multinational company would be considered very attractive to get in business with by traditional automakers.