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    Home » Foxconn eyes Japan-made EVs and China’s AI evolves
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    Foxconn eyes Japan-made EVs and China’s AI evolves

    Arabian Media staffBy Arabian Media staffJuly 10, 2025No Comments5 Mins Read
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    Hello everyone, this is Cissy from Hong Kong.

    Monday was a big day for BYD, as it marked the first anniversary of the Chinese EV champion’s Thailand factory. It delivered its 90,000th vehicle in Thailand, a D9 MPV from its premium sub-brand Denza, after officially entering the south-east Asian nation in 2022.

    BYD is also set to begin assembling electric vehicles at its new factory in Brazil, its largest overseas market, as early as this month. The company aims to produce 50,000 vehicles there this year, a move designed to reduce reliance on imports as tariffs increase.

    BYD has set a total sales target of 5.5mn vehicles for this year. In the first half of this year, the company sold approximately 2.146mn vehicles, achieving nearly 40 per cent of its annual goal. For overseas markets, BYD aims to sell more than 800,000 vehicles in 2025. The company said its overseas sales for the first six months of this year had exceeded 470,000 vehicles.

    While BYD is making rapid progress in overseas markets, its Japanese counterpart Nissan has been struggling. It is attempting a comprehensive overhaul while facing persistent challenges that include mounting financial losses and falling sales, particularly in the US and China. The automaker has been cutting jobs and shutting down some factories, as well as shifting its strategy to prioritise profitability over sheer sales numbers.

    Just-in-time co-operation?

    Amid a sweeping global restructuring that would reduce its final assembly plants from 17 to 10, Nissan Motor appears to have found a potential saviour in Foxconn, who is in talks with Nissan to begin producing its own electric vehicles at Nissan’s Oppama plant in Yokosuka, one of the automaker’s key facilities, write Nikkei’s staff writers.

    This collaboration could allow Nissan to improve utilisation rates at the Oppama site by allocating surplus production lines to Foxconn. It would also help protect jobs, as shutting down the Oppama facility would be costly for the company and its workforce.

    Foxconn has been aggressively expanding into electric vehicle manufacturing through a series of joint ventures around the world. In 2024, the company acquired a 50 per cent stake in a chassis subsidiary of German auto parts giant ZF. A joint venture with Nissan is also being considered for the use of the Oppama plant.

    Painful spikes

    The chief executive of Hitachi Energy has warned that Big Tech’s spiking electricity use as it trains artificial intelligence must be reined in by governments in order to maintain stable supplies, writes the Financial Times’ Harry Dempsey.

    Andreas Schierenbeck, who heads up the world’s largest transformer maker, said that no other industry would be allowed as volatile a use of power as the AI sector.

    Huge surges in power demand at data centres training AI models, along with a bumpy renewable energy supply, meant “volatility on top of volatility” was making it challenging to keep the lights on, Schierenbeck told the FT.

    “AI data centres are very, very different from these office data centres because they really spike up,” he said. “If you start your AI algorithm to learn and give them data to digest, they’re peaking in seconds and going up to 10 times what they have normally used.

    “No user from an industry point of view would be allowed to have this kind of behaviour — if you want to start a smelter, you have to call the utility ahead,” Schierenbeck added, while advocating for data centres to have similar rules applied to them by governments.

    AI’s next generation

    Column chart of Rmb bn showing China’s AI capital expenditure by segment

    The “DeepSeek moment” has revived investors’ appetite for Chinese tech stocks, which had languished since Beijing’s crackdown on the once-glittering sector. But some of the latest AI darlings, such as Manus, look to distance themselves from China in a bid to expand overseas, writes Nikkei Asia’s Cissy Zhou.

    Since its sudden rise to fame, Manus has quietly moved its headquarters to Singapore and has started to aggressively recruit local talent this month, while at the same time laying off more than half of its employees in China, except some key AI engineers, according to people familiar with the matter. The move comes as the start-up seeks international investment in the face of US restrictions on funding Chinese AI companies.

    More broadly, China’s appetite for AI-driven capital expenditure remains robust, despite Washington’s restrictions on shipments of Nvidia’s H20 chips, according to research by Jefferies. The investment bank said China has built up sufficient chip inventories to sustain data centre growth at least through the first half of 2026.

    Supercharged ambitions

    V-GREEN, the company that runs charging stations for VinFast’s electric cars and bikes, aims to expand its network in its home market of Vietnam more than sixfold to 1mn ports in three years, write Nikkei’s Yuji Nitta and Mai Nguyen.

    The target highlights automaker VinFast’s ambitious targets for its home country, where government officials are slowly rolling out policies to support electric vehicle adoption. The automaker sold nearly 90,000 vehicles in Vietnam last year and aims to at least double that figure this year.

    V-GREEN has also recently expanded to the Philippines and Indonesia, though the company says it is facing challenges in terms of technical standards, regulatory frameworks and legal procedures in overseas markets.

    Suggested reads

    1. Indonesia’s growing exodus of skilled talent worries local industries (Nikkei Asia)

    2. Why carmakers need to bring back buttons (FT)

    3. Samsung profits take big hit from US chip controls and AI memory shortfalls (FT)

    4. Singapore’s DayOne Data Centers eyes Japan, Thailand for growth (Nikkei Asia)

    5. Toray unit debuts advanced chip analysis services in US (Nikkei Asia)

    6. OpenAI clamps down on security after foreign spying threats (FT)

    7. Japan, UK firms seek to build ‘world’s first’ floating data centre (Nikkei Asia)

    8. Shein files for Hong Kong IPO to pressure UK to save London listing (FT)

    9. Apple supplier Lens Tech opens 4% up on first Hong Kong trading day (Nikkei Asia)

    10. Chip software makers say US restrictions on sales to China lifted (FT)

    #techAsia is co-ordinated by Nikkei Asia’s Katherine Creel in Tokyo, with assistance from the FT tech desk in London. 

    Sign up here at Nikkei Asia to receive #techAsia each week. The editorial team can be reached at techasia@nex.nikkei.co.jp



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