Drawing on experience with Taiwan’s largest port city and unique BOL model

27 February 2025, Taipei, Taiwan – Hon Hai Technology Group (“Foxconn”) (TWSE:2317) announced it has signed a memorandum of understanding with the State of Sonora in Mexico covering Smart City cooperation, extending for the first time outside of Taiwan a key intelligent platform service that is being developed by the world’s largest electronics manufacturing service provider.

The MOU is a step toward supporting the Mexican state in its goal to explore intelligent city solutions and will leverage Foxconn’s combined experience in Smart City innovations that is ongoing with Taiwan’s largest port city, Kaohsiung, and the Group’s unique Build-Operate-Localize business model.

Under the MOUs, Foxconn will work with the Sonora State Government to promote smart city solutions, starting with transportation, public security and ports, and provide the state’s residents, businesses and local governments with a better digital experience and governance.

Sonora Governor Alfonso Durazo Montaño said the state is ready to become the center of Mexico's electric transportation revolution and take the lead in artificial intelligence to benefit daily life. The MOU with Foxconn will not only continue to position the state at the forefront of research, innovation and technological development, but will also contribute to building a prosperous and healthy future for Mexican families. The Governor said: "In line with the Olinia project promoted by Mexico President Claudia Sheinbaum, we invite Foxconn to explore the possibility of cooperation in the field of electric vehicles, batteries and electric buses."

Foxconn Chairman Young Liu said digitalization and AI-enabled urban governance are important for cities to become intelligent and provide more smart services to businesses and the public. The purpose of Foxconn’s BOL business model is to use the Group’s unique advantages, including its technological capabilities, software and hardware integration, AI computing power, and global reach to share, cooperate, and thrive with countries, regions, and partners.

Chairman Liu said Foxconn is delighted to have this opportunity to cooperate with the State of Sonora to expand its Smart City platform to its first location outside of Taiwan. Drawing from the experience of Kaohsiung’s smart city transformation, Foxconn will deploy the platform so Sonora can join the ranks of smart cities. At the same time, Chairman Liu said Foxconn is honored to be invited to participate in the Olinia project. Going forward, with the support of Mexico's overall policy conditions, we will jointly explore the possibility of industrial cooperation in areas such as electric vehicles, electric buses and batteries.

Smart City is one of three platforms, alongside Smart EV and Smart Manufacturing, that Foxconn is advancing as an emerging platform service company. Foxconn’s proprietary CityGPT based on generative AI is being built out as it assists in Kaohsiung’s transformation. Electric vehicles, including Foxconn’s MODEL T electric bus, become mobile IoT vehicles to collect all city data and synchronize it to CityGPT. The Smart City transformation can lead to data-driven decision-making and increase government efficiency. The sharing and connecting of multiple services will lead to smart transportation and smart tourism.

About Foxconn

Established in 1974 in Taiwan, Hon Hai Technology Group (“Foxconn”) (TWSE:2317) is the world’s largest electronics manufacturer and leading technological solutions provider, ranking 32^nd among the Fortune Global 500. In 2024, revenue totaled TWD6.86 trillion (approx. USD208 billion). The Group’s market share in electronics manufacturing services (EMS) exceeds 40% and covers four major product segments: smart consumer electronics; cloud and networking; computing; and components and others. The Group operates over 200 campuses across 24 countries and is one of the world’s largest employers with approx. 900,000 employees during peak manufacturing season. The Group has expanded its capabilities into the development of electric vehicles, digital health, and robotics, and three key technologies – next-generation communications technology, AI, and semiconductors – which are key to driving its long-term growth strategy. It is dedicated to championing environmental sustainability in the manufacturing process and serving as a best-practice model for global enterprises.

To learn more, visit www.honhai.com