What's going on?

iPhone maker Foxconn announced a lofty goal on Tuesday to manufacture nearly half of the world�s electric vehicles (EVs).

What does this mean?

As the world�s biggest contract electronics manufacturer, ??with nearly 50% of the world�s information and communication tech market under its sway, there�s little reason to doubt Foxconn�s ability to muscle into new industries. That�s doubly true given that the company � which plans to manufacture the EVs for other firms � is making all the right moves so far: it�s built prototypes from scratch to show what it can do, and has already formed cozy partnerships with established carmakers and EV startups alike. With shrewd strategies like that, it�s no wonder Foxconn�s showing such moxie: the company�s aiming to have 5% of the global EV market � worth about $31 billion � as soon as 2025, and hopes to manufacture nearly half of all the world�s EVs in the long run.

Why should I care?

The bigger picture: There is a world elsewhere.
This move won�t just introduce Foxconn to a new industry, it�ll bring the firm to crucial new regions too. The lion�s share of Foxconn�s tech manufacturing has been based in China to date, but with geopolitical tensions between Taiwan and the People�s Republic on a steady boil, it makes sense that the firm�s casting around for some new friends right now. And with new staff in the EV division based exclusively outside of China, this latest move sure shows that Foxconn’s shifting gears.

Zooming out: Everyone�s panning for gold.
It�s not a bad time to be breaking into the EV industry: it�s a market where winners can win big right now. Just take a look at BYD, the Chinese EV company, which announced this week that its quarterly profit could jump 365% to a new record high. With growth like that on the table, it�s no wonder that the industry�s caught Foxconn�s eye.