Listen to that. That is the sound of AI. The world's first lighthouse AI server factory is one of ours. I'm standing in it right now. Foxconn commands 40% share of the global server market. Put it another way, Foxconn is the biggest manufacturer of the most advanced AI servers running on super chips. It begins here. Oh, that's better. Welcome, everyone. Foxconn is celebrating 50 years this year. Thank you so much for joining us today. This Hon Hai Tech Day is a milestone. The past year has been all about artificial intelligence across industries and the current events. AI is pervasive in what we do, in how we see, in what we talk about. AI has accelerated our imagination. This acceleration is coming as Foxconn is transforming. We are redefining ourselves with our three intelligent platforms.
AI is driving our transformation, not for the sake of AI, but because it makes business sense for Foxconn. To kick off the first day of Hon Hai Tech Day, we have invited some good friends in clean technology, electric mobility, and next generation communications to frame your understanding of what Foxconn is doing. We are the world's largest electronic manufacturing service provider. The unrivaled capabilities we bring to our global footprint, more than 200 locations across 24 countries, is being strengthened by our transformation. For example, Foxconn's automotive manufacturing facility and a Super Computing Center, both in southern Taiwan, is all about automation and digital twin efficiencies. The Super Computing Center will host the world's fastest ever super chip, assembled by Foxconn for one of the world's most well-known technology names. You know who I'm talking about.
At Hon Hai Tech Day, you will see the very first mass-produced super chip-powered AI server rack in the world. This is all about smart manufacturing. Smart city is about next generation communications, intelligent urban governance. These need an ecosystem in space. Since we met at Hon Hai Tech Day last year, two of our LEO satellites have circled this planet more than 4,900 times. This year, we'll tell you how compelling collaboration in space will lead to innovative connectivity on the ground. Since 2021, at least one new electric vehicle has been unveiled at each Hon Hai Tech Day. Smart EVs, we won't disappoint you this year. The latest models, which you will see this morning, joins a terrific lineup of EVs, displaying our range and maturity in automotive development.
The Model C, which the world saw for the first time in 2021, this year completed all six stages of the Asia Cross Country Rally in August. That's 2,100 km over a week. This is Southeast Asia's largest rally and the real test of automotive endurance, safety, and reliability. I'll make some magic, and you will see it on the floor in a minute. By the way, the non-racing model has been one of the best-selling passenger EVs in Taiwan. We're going to be talking about new energy in more than one way. With a slate of household names participating for the first time in the Hon Hai Tech Day. It is another compelling collaboration that we anticipate will lead to innovations in new energy. Smart manufacturing, smart city, smart EV. The technology running through Foxconn's three major intelligent platforms is AI.
We're applying AI to enhance what we do, and we're enabling AI with the products we make for our customers. Foxconn is accelerating your imagination. [Non-English Content]. Let's go. Good morning. Wasn't that amazing? Yeah. This is a very powerful EV. Behind the wheel is a driving legend in Taiwan. In Mandarin, we call him [Non-English content] . Mr. Chen He Huan put the Model C through its paces. This is Model C. Okay. It was changed up for competitive off-roading. It was the first-ever EV entrant in the FIA sanctioned rally this year, taking place in Thailand. That's a Model C. We really had fun with that. Racing legend Mr. Chen will be talking more about his experience tomorrow during day two of Hon Hai Tech Day. Please check it out tomorrow. Well, I'm so delighted to welcome everyone to Hon Hai Tech Day 2024.
You know, the first ever HHTD started in 2020. We held it in a high-tech shopping mall. There was less than 1,000 participants. Everyone had a face mask on. Fast-forward five years, look at us now. We have double the number of people here than we did last October. Over 2,000 registered to attend. This is a proper size exhibition hall for everything we are eager to show you. It is nearly double the space of last year. The number of exhibitors and forums this year are another record for Hon Hai Tech Day. For the first time, we'll open a day two to the general public. We want to share and inspire technology and Taiwan. This year, Foxconn is celebrating half a century. Today's achievement would not have happened without the solid foundation first laid out by this company's founder, Mr. Terry Gou.
What excites me the most is the amazing lineup of partners who will share the stage with our Foxconn colleagues in the next two days. BMW, BCG, Breakthrough Energy Ventures, GE Vernova, Intrinsic, Nvidia, Our Next Energy, Pininfarina, Siemens, and Thales Alenia Space. For those who have traveled from afar to be with us in Taipei, for those who are taking time to be with us online, let me say thank you for joining us at Hon Hai Tech Day. It is an honor for me to have you all with us.
Artificial intelligence makes business sense. Whether you love it or fear it, AI is part of all of us now. Facial recognition to turn on your smartphone, logging into your bank account, AI does it. It doesn't sweat the small stuff. The user experience of the Olympics was enhanced by AI for the first time in Paris. AI can take on the big stuff. Foxconn is big. Our robust manufacturing excellence is being defined or redefined by AI. Emotional customers, Athena and Noble among tech leaders, the anecdotes on AI demand are compelling. Let me tell you, our supply chain is ready. Our vertically integrated manufacturing capability also includes the advanced liquid cooling and heat dissipation technologies necessary to complement the GB200 server infrastructure. AI key components, AI key modules and boards, AI server and rack, high-performance switches, AI data center.
Foxconn will be the first to ship these super chips. Artificial intelligence makes business sense. AI is embedded in automation. Automation is productivity. Our customers told us they want to see more automation. This is an almost one-fold increase in productivity when automation is deployed in our factories. Our automotive manufacturing facility, also in Kaohsiung, will be one of the group's benchmark AI factories. The site will utilize digital twin connected to cloud technologies. It will achieve collaboration between virtual and physical production lines. This AI revolution is not just happening for us in Taiwan. In the Americas and in Asia, across our facilities and in those being planned and those under construction. This year, Foxconn is celebrating half a century. This company, your most trusted and reliable partner, has grown from making connectors to systems to more complex core competencies. Three intelligent platforms enabled by AI.
We are a platform solutions provider. I hope you enjoy the conversations during the next two days. Thank you.
Thank you, Chairman Liu, for making that magic happen from on-screen to in-person. Let's begin the next session this morning by welcoming to the stage Benjamin Ting, Foxconn Senior Vice President of the Cloud Enterprise Solutions Business Group, and Deepu Talla, Vice President for AI and Robotics at Nvidia.
Hello. Hello, everyone. Good morning, Deepu.
Good morning, Ben. How are you?
I think, although we don't have the signature black leather jacket today, it is my utmost pleasure and deepest honor to invite you and welcome you to Hon Hai Tech Day.
On behalf of the entire Nvidia family, congratulations to Foxconn for your golden jubilee, 50 years. It's amazing. Jensen himself wanted to be here. Unfortunately, he could not make it. My job is to try to be maybe 1% of Jensen's capability. You know, Ben, something else I realized just now, our CEOs are planning for their second careers. Jensen, I don't know if you caught him, he threw the opening pitch in Taipei during COMPUTEX. He also threw the opening pitch in two baseball games. I guess he's trying to become a baseball pitcher. Now I see Young getting ready to be a champion in the Dakar Rally next.
Yeah. Our Chairman just mentioned, this year is particularly special for the company. We're celebrating our 50th anniversary. This is a great milestone. We mark another important milestone for Foxconn, and we're so excited to share this moment with you, Nvidia, and everyone here today, online, offline. Thank you. Welcome.
Thank you.
Deepu, let's kick off this session. I think everyone would agree, without a doubt, Nvidia has revolutionized the world of computing. You imagine a world where computers can think, learn, and create just like human, better than human. In the near future, this will surpasses human capabilities. It's not a science fiction anymore. It is happening right now. Again, remember, none of this is possible without Nvidia, thank you.
Thank you, Ben. Nvidia, 30 years ago, has pioneered a new way of computing called accelerated computing. One could argue that for maybe until the last two years, it was debatable, even though Nvidia, we believe for 30 years that the new wave of computing has to be accelerated. We have been doing it for 30 years, now it's indisputable that without accelerated computing, we cannot achieve the computing breakthroughs from performance and energy efficiency. 30 years ago, we started with accelerating gaming and graphics.
Right.
20 years ago, we invented CUDA and started accelerating high-performance computing applications. 10 years ago, the AI revolution in the form of deep learning happened, and of course, the world has changed. Here's the best part. Can't wait to see what we can do together for the next 10 years and how far computing will be accelerated.
100%. You know what? NVIDIA is a great partner. They not only give you the chip, they not only give you the solution, they also takes care of you to build your advanced manufacturing. One example, Omniverse. I'm not sure if this But I'll take my chance to talk as much as I can. We're building the largest GB200 production facility on the planet. I don't think I can say where now, but it's the largest on the planet, and we use Omniverse. The Blackwell is very complicated. Very complicated. Foxconn is one of our core competencies. We custom design a highly automated process. We use Omniverse, we build a model, we simulate, and we get very accurate result before the physical deployment. That's amazing. This is really about AI creating AI.
Yeah. If you think about AI in the last 10 years and where we are today, much of it is in the digital world. However, the world is physical. The opportunity in the physical world is 10x larger than the digital world, and the only way we can bring this AI technologies into the physical world is to build and train them in simulation.
The reason we want to train and build them, and build and train and test them in simulation first is, of course, simulation is much faster. It's safer, it's cheaper. It is going to be about simulating it multiple times, and when we are sure that the answer is good, we test it in the physical world, then run the loop again with the digital twin.
Yes, totally agree. This is happening right now and we love it. Since everyone is asking for Blackwell, it's very difficult not to say something about Blackwell. The demand is awfully huge, the partnership between NVIDIA and Foxconn is very important. Deepu, I think everyone would agree. Foxconn scale, global footprint, strong R&D, best-in-class supply chain and operations. Those are amazing. Those are well-known. One thing, there's one more thing. On this journey with NVIDIA, we're finding passion. Really, passion. That passion makes us 100% evolve ourself. That passion make us to move at the speed of light. Passion.
That's right, Ben. In fact, I've been coming to Taiwan for more than 15 years, the thing that I noticed this year at COMPUTEX was, in the past, the whole industry used to think that Taiwan is very good at hardware but t hey're not focused on software. What I saw this year, not only is Taiwan going to be great at software, but actually at solutions and systems.
Yes.
Putting together everything. In fact, I've had the pleasure of working with Foxconn, of course, many of your teams.
Yeah.
Amazing engineers. You mentioned speed of light. Thinking us to start working on building towards solutions and n ot just about components.
Right. Also, since you talked about not just the hardware in Taiwan, actually, within Foxconn, our Chairman also mentioned that remember that we just passed our 50 mark. What's the next? What's the next? We're in the process of transforming the company. Also, our Chairman has made announcement earlier this year at COMPUTEX that we want to build our own Blackwell supercomputing data center. That's the horsepower, that's the foundation of the three Smart Platforms that our Chairman just mentioned. Smart Manufacturing, Smart EV, Smart City. Smart Manufacturing, it has been and will be one of Foxconn's core competencies. Smart EV, fast rising star. The Smart City, you will benefit everyone. Underneath, that's the supercomputing power. We have committed, when it is done, it is going to be the most powerful supercomputer in Taiwan.
Yeah.
Since we talked about the Smart Platforms, I would like to introduce my colleague, Foxconn Chief Digital Officer, Dr. Shi Zhe on the stage.
Hello, Ben.
Yep.
Deepu. Morning, everyone. Excited to be here. That is amazing, tremendous computing power. When we talk about smart manufacturing, Before that, I want to invite three guests coming to the stage to join the discussion. Let's welcome Wendy from Intrinsic, Annem arie from Siemens, and Jeff from BCG.
Hey, Dr. Shi Zhe, it all sounds great. I think I will leave the stage to you all.
Of course.
Thank you.
Thank you.
Thank you.
Thanks, Wendy.
Care for the cliché?
Thanks. Thank you, Jeff.
Stand over here.
Standing? Well, smart manufacturing. As Chairman Young mentioned, we have the three platforms, and the smart manufacturing is one of our Foxconn three intelligent platforms. The AI revolution is transforming our factories using supercomputing capabilities and generative AI. I think first time this year, to our Hon Hai Tech Day, we release our smart factory platform. 50 years of experience, 24 countries, and over 200 locations, and more than cells in our factories. We have a lot data and the real-world cases. These are very valuable assets for our smart manufacturing platform. By fully unleashing the power of generative AI, I think we are in a journey to rebuild our factories to be smarter, faster, and greener. In short, I think, Deepu, actually, we try very hard to use your AI factory to build our factory AI. Would you mind to share more about this? Thanks, Deepu.
To mention NVIDIA, we are an accelerated computing platform company. We start with building chips, but now we build systems, including the data center-scale racks. In fact, if you get a chance, I am sure you will, you should look at the beautiful rendering, and also the build by Foxconn themselves, the DGX GB200 NVL72 rack that you will see in the show floor. Beyond that, on top of that, we have built bunch of software that is really what is required in order to accelerate all these applications, fundamentally focused on two technologies. One is AI, the other one is digital twins based on NVIDIA Omniverse. When we combine the power of AI and digital twin, we can really bring AI from the digital world into the physical world. In fact, if you think about physical AI, it is robotics. Robotics is a three-computer problem.
When you think about a robot, the first thing that comes to mind is a robot like ourselves, where the robot is doing the intelligence in its brain. That is the third computer. Of course, that is the important computer because in the end, that is the destination. However, to bring that robot to life, we have to build and train that robot, and the answer is not to build it in the physical world, but to build it in the digital world first, because it is faster, safer, and cheaper.
The first two computers, one is the AI training computer, and the computer in the middle is where it is built on NVIDIA Omniverse, where we do all the testing. In fact, I believe that for every one physical robot brain, we will probably end up doing 1,000 if not 1 million times more in simulation. It is so much more easier.
We do not want to take the risk of building a robot, testing it in the physical world first. It is not safe. Robotics is a three-computer problem, and at NVIDIA, we have been working on all the three computers and the associated software technologies on top of all these computers, whether it is for training AI, whether it is for running the simulations, or whether it is the runtime AI on the runtime computer.
In fact, if you look at some of the examples Foxconn has adopted this technology very aggressively, very early, in a testament to showing how fast the Taiwan ecosystem is moving forward with investing in solutions and not just components. You see there the number of things. In fact, the top right is very interesting. That is the Foxconn factory in Guadalajara, Mexico. That is building the GB200s. Somebody told me that was 400 m long.
The only thing that I have seen of 400 m is an Olympic track, but that is circular. Ben actually corrected me today morning, that is 450 m long. Can you imagine how big that factory is? It is going to be automated. It was built in simulation first. It has many robots inside it, from AMRs to robot arms. Those are all going to be built and tested in Omniverse first. We are very proud to collaborate with Foxconn using both NVIDIA AI and NVIDIA Omniverse to build these large digital and physical factories. In fact, you can see the type of applications. The only way to bring these type of systems to the real world is with partnerships. I am very proud to be working with a lot of ecosystem partners, and you will hear from two of them today.
Intrinsic leader working inside Google, bringing the robotics environment, then Siemens, of course. Who's bigger in industrial automation than Siemens? You'll hear from them next. Across all these three different technologies, we've been working with Foxconn.
Right . That's fantastic. Speaking of physical AI, Deepu mentioned we are trying to build more AI models for our smart manufacturing. Actually, we think we are building a new world of manufacturing. Let's invite Wendy from Intrinsic to the stage to share us more about how she used the AI to transform the automation industry. Thanks, Wendy.
Thank you. Hello, I'm Wendy Tan White. I'm the CEO of Intrinsic. What is Intrinsic? We are a software and AI company. We're a sister company to Google, part of the Alphabet Group. Our whole purpose is to bring the value of AI into the physical world for you. We're building an AI-integrated platform for intelligent robotics. Our goal is to make it really practical and straightforward for developers and businesses to engage in robotics in an affordable and productive way. To do that, we're building an AI-integrated platform for intelligent robotics and automation that is independent of hardware and devices. In fact, we interface with many different robot brands, for example. With these AI-enabled skills and sensor-enabled data, we allow robots with automation to see, to feel, and to move.
With digital twins, we can simulate the physical world, but we can also deploy into the real world in seconds. This is gonna enable you to customize your processes so you can create more adaptive and reusable automation solutions. Now, what I'm really excited about to share with you today on Foxconn's 50th birthday is we are announcing a very deep partnership with Foxconn, we're super excited to be here today with you. We have a shared vision with Foxconn for making the intelligent factory of the future a reality. With Chairman Liu, with Dr. Shi, the whole Foxconn team. I'll be bringing together Foxconn's smart manufacturing platform, we're gonna bring together Intrinsic's robotics and AI platform. We're gonna use adaptive and reusable automation solutions, we're gonna unlock assembly tasks, logistics, testing, and other valuable solutions for Foxconn, at scale.
We're going to bring AI to every level of magnitude, from individual small tasks to production lines to orchestrating at the factory level as well. Together, we're gonna solve old problems in a new, more sustainable and economical way. We're going to bring in a new generation of manufacturing with AI at the core. We're really excited to be here today with our existing partners, Nvidia. Deepu from Nvidia is here, Annemarie from Siemens, and Jeff from BCG. Of course, our wonderful team from Intrinsic is here too. Thank you guys. Foxconn is bringing together the best in the ecosystem. What does this really mean for the broader electronics manufacturing industry? It means we're moving towards a flexible, intelligent factory.
Imagine you're building a whole production line, and it can adapt to making smaller, mixed batches of products, and whole workflows that can be reused and replicated again in other factories, whether they have a big or a small footprint. We can do this globally. These innovations will enable people to do things they could not do before with automation on the factory floor. You're gonna be able to do seeing with AI, the ability for cameras and sensors to identify and see and understand objects in space. You'll be able to feel with AI. Skills using force-guided sensors. You'll be able to move with AI. Robotic motion planning and the ability for robots to move automatically while avoiding collisions.
Together, we are going to make the intelligent factory of the future a reality, and it's going to be incredible to see how AI will transform the manufacturing ecosystem with Foxconn leading the way.
That is.
Thank you.
Thanks, Wendy. I think that is fantastic. Besides building the iGI with automation system, we are also building AI systems and digital twins for our entire factory. Our partner today, here, is a global leader in both automation and industrial software, Siemens. Let me bring Annemarie to the stage. Thanks, Annemarie.
Thank you, Dr. Shi. It is an honor to be invited to Hon Hai Tech Day. At Siemens, we also believe in the potential of industrial AI. As the global leader of automation and industrial software, we are connecting the real and the virtual world with our digital twin technology, which is an integral part of the recently signed MOU between Hon Hai and Siemens. By using digital twins, we can create a virtual copy of a real factory. In this virtual factory, we can simulate changes to the production environment, processes, and equipment, rather than having to experiment with these complex processes in the real world. What makes our digital twin technology so powerful is that we feed it with real-time data generated by our automation hardware, thereby building a specific real-time replica of your production processes and creating an instant feedback loop.
Powerful AI technologies are leveraged to enhance these simulations. First, we optimize production in the virtual world before implementing the best model in the real world, saving you nerves, time, and money. Digital twins and software are only part of the story. At Siemens, we want to make manufacturing more adaptive, more autonomous, and more sustainable. We are the automation experts. We have profound knowledge of manufacturing processes. We are actually pioneers of AI, especially when it comes to industrial applications. Already back in 1974, researchers at Siemens were experimenting with an early type of natural language question and answer system. You could say kind of like the grandmother of ChatGPT. We are at the cusp of a new age in industrial manufacturing. We can reach new levels of productivity, autonomy, and people centricity if we leverage the power of AI. The equation is simple.
More speed, more flexibility equals greater efficiency. Efficiency simply translates to more money. To unleash this potential, three things will be necessary. Readily accessing the billions of data points that are on the shop floor, speedily aggregating them effectively across the entire enterprise, and evaluating them smartly through standardization. Imagine you can organize and analyze the data from your automation hardware on the edge or in the cloud using state-of-the-art AI technologies and feed the results back instantaneously to the shop floor to adapt your production processes in real time and at scale. If you do this right, the financial benefits can be tremendous. Let me make it more tangible. Together with Hon Hai, we planned, optimized, and built an entire production line using Siemens automation and software.
Even before the line was built, it was planned and optimized using digital twin technology, which ensured that only the most performant version of the line was implemented. This helped to get approval from the customer faster and saved an entire week of reviewing time. Because the manufacturing process was simulated ahead of time with real-time data, ramp-up time for new products was reduced by two weeks. In operations, cycle time has been reduced by 25%, while throughput has increased by 20%. I think these numbers speak for themselves. The vision Hon Hai has set out is a long-term strategy. Having the right partners on board who share your vision will be crucial to its successful realization. We are proud to shape the future of intelligent manufacturing together with Hon Hai.
That is a very impressive achievement, Annemarie. Thank you. I cannot wait to see more generative AI in our manufacturing. Let me bring Jeff from BCG to talk about how the power of generative AI in manufacturing. Thanks, Jeff.
Thanks, Dr. Shi. It's a real pleasure to be here today at Hon Hai Tech Day. I come from BCG. We have a heritage, of course, in strategy, but manufacturing transformation and are now a leading AI consultancy. We're very privileged to help Hon Hai Foxconn ensure that AI makes good business sense. AI is at the center of the transformation into a smart manufacturing platform. All the initiatives to incorporate the great technologies and partners that we're hearing about today, and you'll hear about this afternoon, are brought together in an initiative at Foxconn called Genesis. Genesis is about harnessing the power of AI and generative AI for manufacturing. Now, if we think about AI, what do you need to get real value? A few things are very important. Indeed, one needs great human expertise. One needs the right amount of compute. You need IT, OT architectures.
Very critically, you need data to be differentiated. One of the great advantages that Foxconn has is arguably the world's leading and largest manufacturing data set, driven by the large footprints that we've been hearing about today. Those data, when combined with generative AI, but also machine learning, optimization, and other technologies, yield measurable impact in OEE, in throughput, in CapEx avoidance, and make good business sense. The factory of the future, as envisioned by Foxconn, is built upon three principles, which we call ASL. Autonomous, meaning data and algorithms together recommend interventions, recommend other settings, and things to be done on the factory floor to the still very important human operators. Scalable, meaning these are not use cases that are stuck in POC or pilot, but rather are deployed to the global footprint, and the global footprint actually benefits all the solutions as a whole.
Learning, meaning when a problem or a defect is solved in one place, that information, that learning, is then incorporated into algorithms that yield better performance going forward. ASL is the set of principles upon which Genesis platform is being built. Let's make this real for a moment. If we think about injection molding, right? Really, the one core bit of manufacturing process. Foxconn operates over 10,000 injection molding machines around the world today. Injection molding machines require a very skilled operator to dial in very precise settings, both at the point of new product introduction and to manage defects during mass production.
What is being deployed now is systems that leverage machine learning, expert systems, all with generative AI interfaces to support those technicians with the right recommendations, such that they don't have to waste their time on the easy problems and can focus their precious time solving the most difficult problems. We encourage you to visit the exhibition over here later this afternoon to go in more detail on this use case and many others as well too. Bringing this all together takes a village. Requires four pillars, right? Four pillars are being built as part of Genesis. The first is what is colloquially being called the App Store, but is really the collection of value-adding and real impact use cases that matter on the factory floor around the world. Second, and very importantly, is the IT, OT architecture.
How are all of these data being linked, all the way from automation, various machines, into compute to create these recommendations? Third, and very importantly, is tokenization. How are all these data being leveraged while also, very importantly, protecting customer proprietary information but still supporting the learning systems? Last but not least, of course, the ecosystem, because it requires, I'd say, best-in-class and best-in-world technologies, capabilities, and processes to make this work, and hence incorporating all the things that we've heard from NVIDIA, Intrinsic, and Siemens today. Thank you very much.
Thanks, Jeff. You know why Chairman gave the name Genesis? Because Genesis means the beginning. We are at the beginning of the new era of industrial evolution. Before we wrap up, I want to give you one more thing. This is how Genesis bring us to the future of manufacturing.
Foxconn has pioneered large-scale manufacturing for over 50 years. With 205 factories across 20 countries and over 900,000 employees, Foxconn generates an unparalleled amount of data every second. Going forward, we will use AI to aggregate knowledge and empower our human technicians to achieve higher efficiency. We call this initiative Genesis. Our goal is to develop factories that are autonomous, scalable, and learning. We are poised to lead the charge alongside our partners to overcome obstacles and to set new standards. We invite you to see our progress and innovation firsthand in today's Hon Hai Tech Day.
Thanks. I really want to say thank you to all our friends, Deepu, Wendy, Annemarie Breu, and Jeff, for coming and share their visions for us. We expect to build the factory of the future with all you together. Thanks.
Thank you, Dr. Shi and four of our lovely guests. Let's now welcome Jesse Chao, Head of B5G strategy at Foxconn, to the stage for a conversation relevant to smart city.
Morning, everyone. I'm Jesse. I think that was a very inspiring panel from Dr. Shi. Thank you. Now let's explore another smart platform that connects from Earth to space. Last year, we achieved our first milestone by launching our two PEARL CubeSat into low Earth orbit. This year, we aim to further accelerate your imaginations as we look towards 2030. By 2030, the smart city will enter a whole new era enabled by the 6G network standards. This will leverage the strengths of LEO satellite networks to provide ubiquitous connectivity and also we have MBBS here, right? AI-enabled infrastructures and ultra-low latency services wherever you are. At Foxconn, we're expanding beyond making devices. We're building platforms that connect them globally. We're creating a network of satellites to link smart factories, cities, and soon, the smart AVs. To achieve that, Foxconn cannot do it alone. We need a strong partner.
To tell you more, let's welcome one of my good friends from Thales Alenia Space, Didier Le Boulch.
Hello. Very happy to be here.
Thank you, Didier. Didier, thank you for coming all the way from France. Would you like to give us, our audience, a quick overview of what your company does?
Yes. Thank you, Jesse. My company, Thales Alenia Space, is a joint venture between two big groups in Europe, specialized in electronics, in cybersecurity, in aeronautics, in defense. The groups are Thales on one side, headquartered in France, and Leonardo, headquartered in Italy. What we do is simple, we do any kind of satellite systems. You can see here from low Earth orbit satellites, very close to the Earth, to medium orbit satellites like Galileo, the French or European GPS, and up to geostationary satellites and robots to explore the universe. We work on the full range of activities for space, from observation, navigation, environmental monitoring, telecommunication. We have been leading this activity since decades, which means that we are quoted as old space. It's just because we have a lot of experience.
We have decades of experience on how to build satellites for them to resist the very harsh environment in space. Because in space you have a lot of difficulties to make them reliable for 15 years, like thermal, that is very different from what exists on the Earth. The launch is a very shocking period, very shaking for satellites, they need to resist. In space you also have no protection from the atmosphere about the radiations. You need to resist all this quite nasty environment that the planets and the sun is sending to you.
Yeah. I think we're talking about the old space, right? Why today it's starting to connect from Earth to space? It's because the new space era is coming. The first company that you might come to your mind for the new space, I think SpaceX. We also thanks to them. Because of them, now the launching cost of each one rockets, and of course, the PEARL satellites, has dropped significantly. It's around one-tenth of the cost than before. What will happen? It starts to create a lot of demand where people start to thinking about how to launch their own satellites into the space. In the meantime, the supply compared to demand isn't quite there yet. Today, it's still mostly handcrafted in the factories for each one of these satellites product.
Didier, how does Thales Alenia Space coping with these new space challenges, and what are you envisioning?
It is true that since a few years in space, we see a very, very fast-changing market conditions, an unprecedented wave of change. Sometimes we even call that a tsunami. Because the service you can deliver from space are attracting newcomers and not small players, big players like Apple, like OneWeb, like Amazon, that are now interested by this quite funny environment of space because they just bring services, and they can deliver nice services to the people. When these kind of big companies are interested in this sector, this enables to fund much more massive projects. One order, sometimes two order of magnitude bigger projects than in the past. When you have much more CapEx to be invested, you can build much more satellites and you bring them close to the Earth in order to reduce latency, for instance, or to improve the observation.
This is changing the way to produce them because we need much more automation, much more industrialization, and this is where Foxconn is a great player, and this explains the strong motivation of Foxconn to explore what they can do in the field of space.
I think with Foxconn's strengths that we could do a much more faster and a more affordable satellite for each one of these. Allow me to introduce this partnership because today, Foxconn brings expertise in high-tech manufacturings. Thales Alenia Space masters the satellite technologies. Together, we build this strategy partnership and to build this smart platform that will spans from the ground to the space. Didier, can you tell us a little bit about the new features that we are envisioning for this new space design?
Sure. Yes. Traditionally, satellites were big boxes that providing the solar power generation, the propulsion and orbit control with the payload, the useful part of satellite being inside this box and these antennas being outside of it. Today, in order for instance, to connect smartphones like this one to satellites or to connect electrical vehicles because they need connectivity everywhere at any time, we need to reinvent the way to build those satellites. The new satellites, as the one you see here, are in fact large antennas. It's like flying antennas and all the platform subsystems are built around this antenna. This enables to stack the satellites one above the others, to launch them by tens. They can weight a few hundreds of kilograms up to 1 or 2 tons, depending on the power.
This is enabling really to connect almost anybody in the planet with a smartphone to the satellite network.
It's really amazing that you could stack up all these satellites just like the server in the racks, and it's all for the sake to have one just big launch to shoot dozens, even hundreds of the satellites into the space. In the coming years, we'll see more and more satellite constellations, both commercial and sovereignty based. These satellites will function much alike, like the telecom base stations, but it's building space. Sorry. The connections between these constellations will form the new space internet using familiar global roaming mechanisms provided by each one of your telecoms. The connections between each one of these constellations that will start to form, we say the new space internet, and this new space platform will provide seamless connectivity worldwide. Thank you, Didier, again, for sharing and bringing all this to us.
All we need to do now is think big.
Make it happen.
We do together. Thank you.
Thank you.
Thank you, everyone.
Jesse and Didier. For the next session, Jerry Hsiao, Chief Product Officer of Foxconn, will moderate a panel of experts on clean energy and how it brings partnership together to innovate. Breakthrough Energy is an innovative initiative in clean energy and climate launched by Microsoft co-founder Bill Gates. GE Vernova, with roots from General Electric, seeks new energy that is good for the Earth as it continues its pathway that was laid down first by one of the world's original innovators, Thomas Edison. Our Next Energy is all in to be a household name in battery technology in the United States. BMW i Ventures hails from the well-known German automotive group BMW and is keen to look out for great potential and sustainability.
Good morning, good morning. Welcome to Hon Hai Tech Day 2024. I see a lot of old friends and good friend and new friends. I'm really excited about this section. It is a conversation about clean energy. Sustainability is so critical to our success in Foxconn's three plus three strategy for future growth. Foxconn has invested over $10 billion and achieved encouraging results through new partners and new technology. Today, we invite four of our key partners for this discussion. To achieve the net zero, we are building a team here and going to do great stuff not only for next decade, next century, or not just next year. We working so hard together. This will be a lightning round of insights. I would like to ask each executive on the stage to share with our audience three insights.
First, why you are here at Hon Hai Tech Day. Second, what is your connection to Foxconn? Lastly, what is the key takeaway in clean energy you want this audience to remember? Why don't we have Libby start, then you hand over to Roger, then Mujeeb will follow. Finally, we have Marcus. Libby, floor is yours.
Hi, I'm Libby Wayman. I'm a partner at Breakthrough Energy Ventures. It's such a pleasure to be here at Hon Hai Tech Day. Thank you, Chairman Liu, for inviting us to join you to share our insights and our perspective on the future of energy. Breakthrough Energy was founded by Bill Gates nearly 10 years ago to invest in the companies that can accelerate our transition to a clean economy. It's our thesis that the companies that can accelerate this transition will not only make enormous impact, but will be the leaders of the future of industry. To date, we've invested in over 160 companies that embody this thesis. We invest in this space because energy is prosperity. It's what powers us, what moves us, what makes things, what shelters us, and what feeds the world.
Each one of these sectors is poised for transformation, powered by innovation to address climate change. Today, I'll share with you some key insights on just two of these sectors. The electric grid is the largest machine on Earth. It is expected to expand by 4x to accommodate new demands and the clean economy. For example, AI, we've heard a lot about this morning. It already consumes 2% of global electricity production. This is expected to double in the next two years and to continue to double with the expansion of AI. Electric vehicles today actually only consume about 0.5% of global electricity generation. Yet this is expected to expand by 20x in the next 10 years. Electricity will be generated in new ways. Today, over 75% of new capacity added to the grid is from solar and wind.
Only 15% of electricity that's actually generated is from renewable sources. This means that this growth will continue for decades to come as renewables displace other sources of electricity production. Significant barriers still remain to fully decarbonizing electricity production. First, we need dispatchability. That means getting electricity when and where we need it. We also need base load power because solar and wind aren't always available when and where you need them. One of the most promising technologies for base load power is actually fusion. After decades of research, scientists have now demonstrated net positive electricity production from a fusion reaction. On the left is a view of a fusion reactor that is now being scaled up to a commercially relevant scale outside of Boston, Massachusetts.
Dispatchability, getting electricity when and where we need it, will be enabled by expanding transmission and deploying significant amounts of electricity storage. All of these sectors represent enormous opportunities to address climate change and also for economic growth. Transportation is another sector that's on a similar trajectory. In 2023, 14 million electric vehicles were sold. This is a 35% increase over the previous year and a 600% increase over five years. There are significantly more internal combustion engine vehicles on the road. All of this growth has brought the global fleet of electric vehicles up to 40 million vehicles, and there are 1.5 billion internal combustion engine vehicles on the road today. This means this sector will grow for decades to come as internal combustion engine vehicles are replaced by EVs. This growth has barriers as well. Cost, range, materials availability, and battery safety.
The companies that develop and scale battery technologies to address these barriers will not only make impact in climate change here, but will also be poised to lead in this enormous growth market. The road ahead will not always be smooth. There will be challenges. We will face shortages. We will face times of surplus, dramatic price declines, and spikes. The companies that persevere and invest in discovery, development, and deployment of clean energy technologies will not only make a global impact on climate change, but will also be poised to be leaders of the future. We look forward to expanding collaborations to bring these technologies to global scale manufacturing. Now I'd like to invite Roger Martella from GE Vernova to the stage to share with us how GE sees these opportunities.
Libby, thank you. Mr. Chairman, Jerry, thank you for the honor of including GE Vernova at Hon Hai Tech Day. It's a privilege to be here. When Thomas Edison invented the light bulb and founded General Electric, he started the first electrification revolution. Today, we're at the beginning of a new revolution, a clean energy revolution. An energy revolution focused on electrifying the planet, decarbonizing the energy sector, and sustainable economic development for everyone. This time, GE cannot do it alone. We're going to lead this clean energy revolution together with our partners, one of the most important of which globally is Foxconn. It's an honor for us to be here.
With that, I would love to introduce our CEO, Scott Strazik, to share what GE Vernova is doing and how we're collaborating with Foxconn. If we could please share Scott's video.
Hi, everyone. I'm Scott Strazik, the CEO of GE Vernova, a purpose-built company working to electrify and decarbonize the world. Thank you to Foxconn for the honor to participate in this year's Hon Hai Tech Day. Your work across the globe is incredibly important, and it is an honor to talk with you today. While I unfortunately could not be there in person, I have fond memories of my previous trips to Taiwan and look forward to visiting again soon. At GE Vernova, our technology helps generate 25% of the world's electricity. We are uniquely positioned with solutions across our power, wind, and electrification segments, each with their own distinct product and service offerings delivered on a global scale. Building on GE's rich history of innovation, we're investing over $1 billion a year in research and development to commercialize breakthrough technologies.
We are especially proud of our work across Taiwan's energy sector over the past 60 years to support its efforts to electrify the country while innovating clean energy solutions. Our 200-plus employees in Taiwan are motivated and well-positioned to support the government today, best evidenced with almost 10 gigawatts of new gas power awards we have received since 2019 that we are currently installing and commissioning. We value Foxconn's leadership for Taiwan and the world. The work that Foxconn and its partners do is lifting up the quality of life for people everywhere, catalyzing global economic development and innovating cutting-edge technology. We're proud to grow our partnership globally as both companies work to solve some of the world's most pressing challenges.
As Taiwan and the world rise to meet the demands of the energy transition, GE Vernova will continue to offer strong partnership and collaboration with governments, customers, and stakeholders to tackle the toughest challenges ahead of us. The future is bright, thanks in part to the good people here in this room, I truly believe we have the energy to change the world. Thank you, enjoy the conference.
Scott, thank you. Very briefly, in terms of how we are approaching this challenge, if we could go back one slide, please. I probably hit the button too fast. We have a sustainability framework, and we are the first company to put electrification as a core part of its sustainability mission. We have heard about the need to power artificial intelligence, data centers, the beautiful electric vehicle that came through here to make sure that kids can turn the lights on and feel safe, parents can access their jobs, and people can access healthcare. That is our imperative, to electrify the planet. But at the same time, we need to focus on decarbonization.
As we grow capacity, make sure the electrons we introduce are cleaner than the ones that came before it by lowering carbon intensity and investing in the breakthrough technologies of the future, like carbon capture, small modular reactors, and hydrogen, things that Libby talked about. All while we conserve resources and operate as a company and lift up the quality of life for our people and our communities everywhere. We support that with our performance, but as I said in the beginning, we cannot do this alone.
That is why we are so proud of Foxconn's global leadership and the unique role that it plays with its electronics expertise, with its manufacturing prowess and its global scale, and our partnership together to expand their presence in the U.S. to bring the best of what they do to serve for the benefit of electrification, decarbonization, and sustainable economic development through their leadership in helping us to deliver battery storage manufacturing in the U.S. that will service all of those goals. As I said, this is the beginning of a revolution, the clean energy revolution. We are proud of our partnership with Foxconn. We are proud of Foxconn's leadership, and we have confidence that when history looks back on this, they are going to be at the table as one of the global leaders that helped solve the world's most pressing challenges together. Thank you.
Thank you. Thank you very much, Roger . It is a pleasure to be here at Hon Hai Tech Day to share this vision that GE Vernova just expressed. Now, as Jerry Hsiao has brought us together in partnership with Foxconn, it is inspiring to witness Chairman Liu's three plus three vision in action. The electric vehicles that you have on display are truly remarkable. We want to position ourselves with Foxconn to become a global leader in electrification.
As ONE and Foxconn have started working together, we established three points of commonality. Our vision at ONE is simple. We are here to solve and improve the range of electric vehicles, because that is the most essential element to commercializing a successful industry that electric vehicle buyers are interested in. We want to make sure that safety is at the center of everything we do. We cannot afford battery fires.
We have to put an end to catastrophic thermal runaway and battery fires that can threaten products. Very specifically, working with Foxconn, addressing the topic of global supply chain. Scale and the people at scale will be the first to win the marketplace. I want to introduce now three technologies. The first technology is 1,000-km battery. The second is a 600-km battery that can recharge 500- km in 15 minutes. The third is a smart battery that starts to connect the automotive industry and transportation with the grid. This 1,000-kilometer battery was birthed as an idea in 2021. Working with Markus at BMW and with all of our partners at BMW, we started to develop this technology in 2021 in joint partnership, and in 2023, we were able to demonstrate a 978-km drive on a single charge with BMW.
This begins the revolution where an electric vehicle can become the only vehicle that you need. Right now, electric vehicle adoption has hesitated because of range. As we start to develop our strategies for electrification, we have to deal with the topic of battery fires. It is not acceptable that you have recalls that can threaten the business viability, that you have cargo ships with EV fires that can threaten insurance industries' willingness to ship batteries and electric vehicles across the oceans, and that you can threaten apartment buildings with battery fires in garages. These are topics that One deeply cares about in the development of technologies that can solve and make sure that energy transition is successful.
Our battery technologies, if you go back to around 2020, leading developers of LFP or iron-based battery technologies in China had achieved about 400 km of range with a safer battery that was lower cost and had a more durable supply chain. That was not sufficient for the Western markets. The Western markets had set the bar at around 500 or more kilometers of range. We are now working on an iron-based battery that can deliver 600 km of range, recharge in 15 minutes, 500 km, and to give you an example of how powerful that can be, if you were to circumnavigate the Taiwanese island, 1,500 km, you'd only need to stop twice to recharge, and each stop would only be 15 minutes. That could be a powerful future to enable this electrification journey.
Our final stop in our battery technology review at One is a smart battery. A battery that could back up your home for days if you had a power outage during a storm, a battery that can serve your automotive needs and transport you back and forth to work and take long trips as we described, but importantly, that same battery, as Roger has outlined the vision for grid batteries, can service the grid. While you're at work, your battery's working hard to earn revenue for you. That is a very different future where you're buying an electric vehicle, and if I look back at the Apple example of iPhone, the most important aspect of what changed our lives permanently was the advent of something called the App Store. It was a marketplace.
Think about a smart battery, an energy marketplace, where that same battery in your car services the grid and earns revenue, like $1,000 a year. That changes the game on electrification and adoption. We're working to bring that future to life. We're proud of our partnerships on stage. We're very thankful to our partnership with BMW. It takes in a startup, a company that's willing to bet on your future success, and Marcus, I'm going to introduce now next, was one of those individuals that made the difference in our company's small and young career. Please, Marcus.
Thank you, Mujeeb.
Thank you.
Thank you for inviting me today. It's an honor to speak here and I think following Mujeeb says it all. I'm representing BMW i Ventures, the corporate venture arm of BMW, and we are here to invest in new technologies, help decarbonize the planet, and bring BMW forward when it comes to new technology. With this, we are invested in Our Next Energy, because, and you saw the collaboration, we believe that we need giant leaps forward in battery technology, and we are the instrument at BMW to foster this with money and also bring this forward. In this matter, and now today here, I think it would also be great to have somebody like Foxconn joining our endeavors and our engagement there. Let's take a little step back. BMW's electric vehicle has a long history, right?
A little bit more than the 50 years ago that we're celebrating here today, there was the first electric vehicle at the Olympic Games in Munich, leading the marathon race. You don't have any fumes exiting the leading vehicle, you had an electric vehicle leading the marathon race. You might remember the i8, the first hybrid sports car, and the i3 as a pinnacle of technology and electrification in the beginning. We're talking a little bit about, we saw the numbers from Libby, about what the electrification means in the vehicle market and where it maybe has a little hesitation today, but we can proudly say that we grew 34% in the vehicle sales in the first half of this year.
That said, I'm here to speak for the venture arm because we're looking forward to finding new technologies that will enable us for the future. It's good to look into the past, but it's always good to look forward and see what is coming next. I just brought a couple pictures here from the Neue Klasse, which is a very German word, but it goes back again to the heritage and builds the bridge for the future. We're looking for enabling technologies for our next generation vehicle that will be an electric platform going forward, and which was introduced two years ago, and this will hit the sales next year. We, with our technology, hope to get as many companies and startups and brilliant ideas into this vehicle as we can to make this future really become alive.
With that, I'm actually closing here and handing back to Jeff. Thank you so much for, Jerry. Sorry, Jerry. Thank you so much for having me here.
Thank you so much.
Yeah.
It's wonderful, beautiful car, I have to say. Can't wait to get one. Libby, Roger, Mujeeb, and Marcus, really appreciate. Very great insight. We really appreciate the partnership and also friendship. Today, we are standing at a pivotal moment where clean energy is not just a choice, but it's a cornerstone, the cornerstone of our prosperity and innovation. It is our responsibility and also very important responsibility to Foxconn to ensure that energy is sustainable and safe, paving the way for a brighter future for all. Foxconn is collaborating with like-minded partners to pioneer new technologies that will accelerate the energy transition and driving the meaningful changes in clean energy industry. Together, we're not just making stride toward to zero emission. We are unifying our effort to achieve sustainable development goals that will benefit generation to come.
This is so exciting journey of energy transformation. We invite you to be part of it. Let's join hand to create a bright future fueled by innovation and sustainability. Thank you so much.
Thank you, Jerry, and the panelists. Clean energy is a natural bridge into the next sessions on smart EVs. The next two sessions will provide insights on how Foxconn's automotive partnerships have tapped into product excellence. Let's now welcome Jun Seki, Chief Strategy Officer for Electric Vehicles at Foxconn, to the stage.
[Non-English content]. Let me revisit the Foxconn EV strategy a little bit. Our core business is, of course, assembly, contracted manufacturings, same as like smartphones, laptop, game machines. Thinking about EV business, we needed a little punchy spice. That is D, CDMS. D for design. Why we need a design service together with assembly service? When we look at the EV market, we are seeing many non-auto EV players. Of course, they don't have EVs. Even traditional OEMs, sometimes they need line-ups from us to make time to market shortest, investment market smallest. That's why we have a CDMS together with CMS. After my sessions, three new car coming. Those are extending our business for more flexibility to customers. We do this design service for component side. From left-hand side, you see components, module, and platforms, and also even after-sales.
After-sales is mainly like a charger, energy storage. We do provide a manufacturing service together with design service for this. We don't have to do these components everything by ourselves. Organic is very important, but efficiently, having a partner is even more efficient. You know this right-hand side guy is very famous, our chairman. Left-hand side guy, Dr. Klemens Holger, CEO of ZF, was on this stage with me last year Hon Hai Tech Days. He said, "We make a joint venture together with Foxconn in 2024." Actually, we did. As you see, May 1st, we newly established ZF Foxconn Chassis Modules. We need a new name. It's too long. Let me shorten to ZF Foxconn. Now, I want to invite our new families. Sorry, it's not moving. Yeah. Mr. Eike Böhm, CEO of our new joint venture, come on stage, Eike Thank you.
Thank you.
Thank you. Eike, this is your first time for our Hon Hai Tech Days, yeah?
Yes.
How do you feel?
Oh, it's amazing. It's really a great show. Great honor to be here, learning a lot. Very inspiring sessions up to now. Yeah.
Many people.
Yes.
Probably, we must worry about food court after this session. Okay. Eike, first, can you provide an outline of our joint venture?
Okay. Our company, essentially everybody knows what Foxconn does for the mobile phones, right? What we do for the automotive industry is exactly the same. We provide axle and chassis systems for the automotive players of the world, the premium manufacturers. You see the brands located here. We have about 3,500 people worldwide in 27 locations over 13 countries. We really pride ourselves in the transformation of the electrification industry, because it's a massively growing market as well.
Okay. When we talking about our components, today, many people talking about AIs, high technologies, digitalization, satellite. Our component looks like very much traditional component. Under this digitalization world, can you explain us why market is focusing this product, why you are growing so fast?
Okay. I want to introduce the growth pattern that we have in our industry is driven by two main trends that you see everywhere in the automotive industry. One is the electrification trend, so our products and services are getting much more valuable as we speak, and we drive that really forward. The second driver is the outsourcing trend itself. Where the OE manufacturers are focusing on their differentiation, on their powertrains, on their differentiation between the different players in the market, and give more content to other players. That is what is really driving the growth of the market.
Yep. Always insource, outsource is repeating, but now today, you are right, those hardware-based component become more outsourced, software becoming maybe insourced.
Yeah.
Under that market, can you tell us your vision for future?
Okay. My objective as a CEO of this company is to outperform the growth of the market. We see that the market is doubling. We also want to drive that. We've recently announced that we want to increase our revenues from TWD 4 billion-TWD 8 billion over the next years. This does not even include any of the Foxconn vehicle opportunities that we may talk about in the future as well. This is really the drive where we want to gain more market share and really make a big step into the market as well going forward.
Very good. TWD 8 billion minimum.
Yes.
Thank you.
Yes.
Okay. Short, but Eike, please close our session.
Okay. At the end, our drive in this industry is really driven by the rigorous focus on accountability and safety. Let's not forget it's safety critical products that we make. Very important that we do this. Our business model requires that we deliver these products, we make and deliver these products within hours from ordering of the customer to the delivery point at the factory of the customer. That is really something where we have to drive in efficiency in our organizations, and that really nicely fits together with Foxconn in the future of your electrification strategy as well. What I'm really looking forward to at the end of the day is having a lot of smart vehicles on the road and knowing that our vehicles are always going to be part of this.
As long as the cars don't fly, the axles are here to stay.
Okay. Thank you, Eike. Please everyone, remember ZF Foxconn Modules, our new family. Thank you very much.
Thank you. Thank you.
Thank you, Seki and Eike. Up next, we'll hear from another speaker on automotive partnerships. Hailing from Italy, Pininfarina is truly a masterclass in design. Let's welcome Felix Kilbertus, Chief Creative Officer of Pininfarina to the stage.
Good morning. Good morning, everybody. I'm excited to be here with you today at this incredible event. My name is Felix Kilbertus, and I have the privilege to serve as the Chief Creative Officer at Pininfarina. For the next 10 minutes, I also have the unenviable task to summarize the radical transformation of automotive design tools over the past 100 years. Evolving from hand-drawn sketches to physical models, to highly sophisticated digital tools and virtual simulations. Let's start at the beginning. Let me introduce to you Battista "Pinin" Farina, here as a young man on board a boat to America, where he will meet Henry Ford and famously refuse his job offer to return to Italy and set up his own company in 1930. The coachmaker and design house which will celebrate its 95th year next year.
What would Pininfarina have seen on his first trip to America? Probably something like these city scenes of Times Square in New York. We see a bustling city full of movement, color, and light. Quite a modern city, actually, and already illuminated at night. I think the author William Gibson said it best, "The future is already here. It's just not evenly distributed." Let's see if we can find the seeds of the future already in the past. What do we see? We see hand-drawn sketches, pen and paper, crayons, and watercolor. Yes, we still do that to this day. We sketch and doodle by hand, pen and paper. Our designers still express their personal artistry in hand-drawn illustrations. How did the design process work back in the days?
Elaborate drawings express an idea, drafting tools like pencils and rulers were instruments for precise line drawings, producing side views and top views. In fact, the base for skilled craftsmen to build models in clay, plaster, and other materials. As you can imagine, design changes were slow and labor-intensive. Some of the most beautiful cars were designed with our hands, like the Cisitalia, now part of the permanent collection at the MoMA in New York. This was the era of central shapes, deeply rooted in craft, still analog and built by hand, made in factories without robots. In fact, only science fiction writers like Isaac Asimov could imagine robots and space travel or intelligent machines traveling in space. The three laws of robotics were actually an influential byproduct of his short stories. Imagining the future is also designing with your mind.
Moving into the 1960s, designers were capturing the potential of revolutionary materials for new shapes like fiberglass, synthetic foams, plastics to replace wood and sheet metal, and to use color where chrome was needed before. New drawing techniques, markers, colorful paper, gave rise to a new level of artistic expressivity. However, the process behind remained largely the same. A drawing, an elaborate model, and sections to build a full-size prototype by hand. These master sections were printed on big sheets of paper. Wireframes were made from these sections, first manually and then gradually computerized. These early digital drafting boards looked actually more like the control room than an artist studio. This was perhaps not a coincidence because similar technology was used by the Apollo program at the same time. In fact, never have or rarely has popular imagination and cutting-edge design been so closely aligned.
This really looked more spaceship than road car. In fact, visionary filmmakers like Stanley Kubrick used the same aesthetic for "2001: A Space Odyssey," released, in fact, the year before the moon landing. This film was most remarkable for the first believable depiction of artificial intelligence. Unfortunately, HAL 9000, the supercomputer in charge of navigation and mission control, proved somewhat hostile to human interests. George Lucas depicted an altogether friendlier AI in the shape of a helpful robot, a loyal wingman named R2-D2. As a kid growing up in the 1980s, I was very impressed with KITT, a car that could not only drive itself but also speak. Level 5 autonomous drive and voice control, actually complicated words that I learned much, much later.
Now, all of this to say that while the vision was there, however, apart from smarter and maybe a more advanced look, cars of the 1980s still were far from intelligent. The design process was still largely a manual business. Sketches, a side view, a model. However, more modern materials did influence new solutions, like the flush integrated lamps, for example, and so did aerodynamics. The use of wind tunnels for aerodynamic testing became even more prominent but still required physical models to evaluate airflow. The real revolution was the onset of digital design tools. Photoshop, of course, 3D modeling software, and visualization completely changed the way we worked in the 2000s. Material science gave new possibilities for shape inspired by nature and a growing focus on eco-conscious design. 3D printing is also used for models and components, with illumination now an important design element.
In fact, the first-generation iPhone coincides with the complete transformation of interior design, with the arrival of screens and touch screens and powerful connectivity bringing navigation and in-car entertainment. Digital modeling, by this time, now became truly usable, allowing our designers to render photorealistic images of their designs. We take that for granted today, but 20 years ago, this was revolutionary. Designers could now make quick changes, visualizing cars from multiple angles. Can you tell the difference to this image here? This is a photograph of the actual prototype built with computerized milling and additive manufacturing. This enables the faithful transition from digital to physical. Even the package itself became interactive and fully 3D. Such parametric models, where dimensions and constraints could be easily adjusted, provided more flexibility for packaging. Long gone are the days since hand-drawn side views. How do we work today in Pininfarina?
Design has become more collaborative and connected than ever. We can now work with our partners remotely and across continents. Design reviews are now fully immersive. We have wall-sized screens and can see shapes in real size and in real time. Digital design tools enable virtual prototyping, reducing the need for models. The engineers and the designers now run simulations for aerodynamics or crash requirements in parallel, therefore, saving time. UX and UI design becomes the new frontier. We now need to answer new questions and work in new ways. We not only have to design shapes, but also interaction, motion, and human machine interfaces. These powerful tools allow us to shape technology around human needs, and all that long before physical models are made. At the beginning of a new project, how do we start a new journey? Our craftsmanship is now digital as well as manual.
From the beginning, our creatives use a mix of 2D and 3D digital tools. In fact, there's a shift in the role of the designer from the generator of ideas to an editor of ideas. Here, AI also opens a new frontier in achieving better quality faster. Also, we can now turn 2D images directly into animations, helping enormously in communicating ideas. This means that fewer people can achieve more, but need to learn to become better editors. It is more important than ever to select the right solutions and to ask the right questions. In fact, where I find the biggest impact in our workflow is in understanding better who we design for and to anticipate people's needs. Never before was it possible to create hyperrealistic images of our future users with a few text prompts.
This is unprecedented and allows us to really, really put the human back in the center. Now, as we've seen over the last few minutes, many visions from science fiction and art have become today's reality. We have more and better tools than ever, and we use all of them, our hands and our minds, and we're looking forward to more advanced materials and are excited about the promise and challenge of AI and robotics for mobility. As we keep our minds open and pay attention to a new generation of artists and visionaries for seeds of the future, we will remember to always put the human needs at the center of everything we design. Because at Pininfarina, we believe that design is a method and a mindset. In fact, it is the instrument to humanize innovation. Thank you very much.
Thank you, Felix. The next three speakers will now lead us through some exciting new developments in electric vehicles. Let us first welcome Andy Lee, CEO of Foxtron, to the stage.
Hello, everyone. You must be wondering what this vehicle is all about. Before I introduce the product, I would like to talk about a company, Foxtron. Foxtron was founded in November 2020. We are a subsidiary of Foxconn. In less than four years, we have completed the passenger car product line, including E segment crossover, C segment SUV, D segment lifestyle multipurpose utility vehicles. Tyse is going to tell you more about this in the next session. We have an E segment sedan. In the e-bus product line, we have city bus Model T and mini bus Model U, which Emma will share more with you later as well. These are the reference vehicles that we provide to our partners for their customizations. Partner can choose their preferred reference design to customize their car. That's what we call CDMS.
Under the modular platform, we are able to combine the hardware module flexibly. With the software-defined E/E architecture, we have the capability to update all the major controllers in our car, achieving configurable hardware through software update, this allow us to continuously improve user experience during the ownership. Additionally, this capability can also be used for vehicle production. Through the centralized controller, we can detect and confirm that each installed controller is properly assembled and functioning correctly. Let's talk about Model C. In Q1 of this year, Model C was launched in Taiwan. The market response was very good, and it quickly has become one of the best-selling electric car in Taiwan. With the capability and the market track record now, partners from around the world are coming to seek opportunity for collaborations. Today, I'm excited to introduce our first Model C variant for U.S. market.
This is the car we have worked on with our partner from the United States. It is tailored for U.S. market. Maintaining the original size and interior space of the Model C, we have enlarged the variable S-duct to reduce the wind drag at the front. Additionally, we have optimized the side mirror to further enhance aerodynamic efficiency. With the new design, it give us a more streamlined and harmonious style. On the headlights, we have incorporated adaptive driving beam technologies that provides comprehensive illumination in various weather and road conditions. At the charging interface, we have also adopted NACS standard. This align the vehicle with the best charging network support in U.S. In the design for the interiors, we have increased the use of soft touch materials and utilized ambient lighting to create a package suitable for the U.S. market.
The new steering wheel design incorporates rollers and physical buttons to make it more intuitive to use. On the central display, we have adopted an independent floating design. This allow us to have a larger and more convenient space in the front cabin that should always give you a delightful drive. In the user interface, we collaborated with the team in the U.S. to design a UI that meets the needs of the market. I would like to talk some more about this UI. The digital experience in the vehicles are very different from other devices, we explore countless concept and approaches, all leading to the desire for a clear and simple interface. In addition to the digital changes, we introduce physical button, which communicates feedback to the driver more precisely, improving safety with the flexibility of touch screen functions.
The Model C, designed together with our American partners specifically for the U.S. market, we are launching at the end of 2025. Stay tuned. Thank you.
Thank you, Andy. The moment for the first of two EV big reveals. Let's welcome to the stage, Emma Lee, product planning administrator at Foxtron.
Remember this moment. You are at the premiere of a new EV by the Foxconn family. Before I tell you about it, I need to take you back to show you how we got here. It was three years ago at Hon Hai Tech Day 2021 when the Model T made its own world debut. It's revolutionized public perceptions of what transportations can be with its clean and minimalistic appearance. It realized the design concept of reflecting the beauty of a city back to its people with its large windows. Since then, the Model T has become a celebrity. It is popular and iconic, and in service across more than 10 cities in Taiwan. It carries thousands of people every day, safely and with zero emissions. It won the Good Design Award from Japan. It has been used in Indonesia for G20 meetings in Bali.
Like all of our passenger vehicles, we care about the user experience of our electric buses. The interesting part about the bus is there is the driver, there are the passengers, and also the fleet management companies. We need to take care of and consider all of their needs. That means exceptionally comfortable ride, good NVH, advanced safety systems, smooth power delivery, outstanding energy efficiency, and a spacious cabin. The expectations are high for a fantastic bus. We achieved that with our Model T. How about those narrow urban alleys, remote areas, and country roads? Smaller, more agile demands are requested. If you thought the Model T was amazing, let me introduce you to its cool cousin. Please meet the latest member of the Foxtron eBus family, the Model U. This is the result when flexibilities meet possibilities in a mini form.
The concept of the Model U is to provide a configurable mobile space. Its dimensions are 6,990 mm in length, 2,080 mm in width, and 2,650 mm in height. It has a wheelbase of 3,995 mm. The cabin is spacious, and the floor is almost completely flat. That can be customized with different seating configurations and cabin functionalities. This offers an endless amount of possibilities to meet various needs. The control systems is taken straight from our passenger car projects, our centralized E/E architecture, enhancing the operational efficiency of our EV business and improve the overall performance and bandwidth of our products. This integration allowed us seamlessly adopt the features such as keyless entry, camera monitor systems, and ADAS systems to the Model U. It provides the driver with greater visibility, safety, and comfort for a pleasant driving experience.
The daily average range requirements of a minibus as a public transportations is approximately 200 km in Taiwan. Most electric minibus offers a range of 120- 160 km. That is not enough for the market and not enough for the operating companies to manage and run their business well with efficiencies. This is the challenge that the e-bus team at Foxtron is trying to address with the Model U. In order to achieve an outstanding energy consumption while maintaining the load capacity and safety requirements, we gave it a new aluminum frame and optimized the chassis structures that reduced the weight about 626 kg. You know, equal to a fat polar bear. Oh, don't worry, no bear were harmed. We studied the management of the cabin temperature and applied our latest thermal control systems so it runs more efficiently and maintains a constant temperature better.
Last, we worked with our aerodynamic team to create a low-drag body shape. With all that, the Model U offers a maximum range of 275 km and can meet different operational needs through various battery options. Today, we have a luxury version of the Model U for you. The design carries onward the design languages of the Model T. Remember the big one? Featuring a lean back front end with smooth curves around the edges, while the rear of the vehicles remains an angular design that houses the dual opening tailgates. Its minimalistic line connecting the front and the rear defines the distinctive appearance of the Model U. Okay, let's get in the car and take a look at the interior. The interior is filled with earthy colors, metallic accent finishes, and warm ambient lighting, emphasizing an elegant and rich atmosphere.
Every detail is carefully considered to enhance the overall experience, making you feel valued and appreciated as soon as you step inside. The cabin is divided into two zones, separating the driver from the rest of the cabin for better privacy. The VIP lounge sections features a normal seating area equipped with four individual ottoman seats and an area dedicated for face-to-face interactions and communications. This environment offers a comfortable space for passengers to socialize and relax while traveling to their destinations. How about an Italian espresso or bubble milk tea? Would you like it? Well, at least I love it. A minibar and a coffee machine is at your service in the Model U. For the driver, a 15.6-inch touchscreen and 12.3 digital meters are there to easily monitor vehicle information and adjust its settings, supporting the driver to provide a comfortable and safe ride.
Based on our customized software and modular platform design abilities, if you can imagine it, the Model U can realize it. A VIP shuttle or a mobile office? Not a problem. By removing the interior elements and then changing seating arrangement, we then turn it into a 21-seater bus for daily transportation. How about a wellness cave for the A in your DEIA needs, diversity, equality, inclusion, and accessibility? The Model U can be easy mobility for those that are not so mobile. Maybe you just want an RV that reflects your personality and lifestyle. You bet. This EV offers an universal mobile space solutions. Model U, just for you. The Model U marks the beginning of our journey into versatile mobile space applications. Stylish, intelligent, limitless possibility. Remember this moment. Thank you.
Thank you, Emma. Now, the moment for the second of two EV big reveals. Let's welcome Tyse Chu, Principal Project Manager at Foxtron.
Good morning. It's now time, finally time, for the Model D to reveal itself. Before we go there, I'd like to share just a little bit more about Foxtron. To provide you the background and also the perspective of how we approach our business and product developments. As Foxtron, we are working and operating within the bigger EV vision of Foxconn. With that, we are an EV platform provider first. The reason why we want to build reference vehicles is because we want to inspire. To inspire what is possible with our platforms, to showcase what we are capable of, and to bring confidence to our partners, which requires proving ourselves more than just in design and engineering. It extends into having robust peripheral functions such as marketing, supplier management, logistics, IT system, after-sale support, and I can go on and on and on.
Regardless of the requirements, the mission for Foxtron is very, very clear. We are here to provide EV solutions and to help the adaptation of EV cars. With this year's reference vehicle, it marks the fourth passenger vehicle that we are working on. With every year, we accumulate findings and lessons learned that we apply to current projects to improve ourselves. That is especially true for this year, because the Model D is utilizing our next generation platform that takes the product to the next level. With a new platform, it comes with better specifications and new technologies, of course. It really is the user experience that we care about the most, where we spend a tremendous amount of time filtering out the most meaningful contents for the vehicle and to figure out how to design the human machine interaction.
What do we care about a D segment vehicle? That is, honestly speaking, a difficult question to answer because a D segment vehicle has so many different purposes, so many different meanings to so many different people. For us, we believe to be able to move in comfort, having enough space to handle your dailies, to feel safe and at ease when you're traveling, and on top of that, to become the gateway to unforgettable memories, sounds like a very good combination to us. Ladies and gentlemen, please welcome the Model D.
From life's first spark, new worlds ignite. The world moves unseen, silent, serene. In every step, a chance to learn. Beyond the limits of space and time. We lead the way, guiding each new day. Technology makes the dream.
Just look at the car. All right. Let's start with the obvious. When we visually designed the Model D, we took inspiration of the distinctive light bar design, which we first introduced on the Model E. This light bar design provides a very clean run-through of the vehicle, emphasizing the visual width of the car at the front and also at the rear. Dimensionally, it is 5,195 mm in length, 1,995 mm in width, and 1,785 mm in height, paired with a wheelbase of 3,200 mm. This package allowed us to provide a critical battery size for the range and offer a very spacious interior. However, we did not want to sacrifice the nimbleness of the vehicle.
By using the rear-wheel steering system that comes with the new platform, we shortened the turning radius to 5.5 m, and that is amazing, because a 5.5 m turning radius is about the same as what a B segment EV vehicle is doing right now, and that is two segments smaller than the Model D. For aerodynamic reasons, we maintained the S-Duct design and also the air curtain designs that are on the sides at the front, and paired that with a slightly sloped roofline, which helped us to reduce the frontal area and control the turbulence that is coming out of the vehicle, which also affects the wind noise, by the way, and bringing the drag coefficient of this vehicle down to a very low 0.23. This drag coefficient is not just achieved by the shape of the vehicle alone, though.
With all the bells and whistles that the vehicle comes with, we are estimating a range of 800 km on a single charge. The range, like I said in the beginning, is not the most important thing here. It is the user experience, and that is to provide the luxury not to worry about the range and make it easy, really, really easy and comfortable for everyday use. The total range of the vehicle is only part of the story. Another part is the charging speed. Benefited by the 800-volt powertrain system that comes with the new platform, the charging time is now significantly faster, meaning 350 km in just 10 minutes. 10 minutes of charging.
That is the distance from Taipei to Kaohsiung, which is on the other side of Taiwan, in just 10 minutes. There is another element that is related to this, and that is when you are driving a vehicle like this, you never want it to feel underpowered, right? Especially when you are merging onto a highway. The Model D will come with 350 kW rear-wheel drive as standard and 440 kW all-wheel drive for those that need the pulling power or have some fun. Before we move to the inside of the vehicle, I like to take your attention to the cameras that are on this car.
These cameras belong to the latest ADAS system that we are developing that assists the driver moving from point A to point B under supervised condition, NOA, Navigate on Autopilot, as we call it, making long journeys, especially long journeys, so much more relaxing and enjoyable to drive. Or sometimes we can say to be driven in, depending on your definition. As the door opens and getting ready for us to step inside, the vehicle drops to its minimum height again, which is another function that is related to our active suspension. Once you are inside the vehicle, you quickly realize that we developed a whole new user interface. This UI crucially includes the new connected app control function, meaning the possibility to pair personal devices to the vehicle and interact with it through those.
It is a little bit like bringing your own tech to the vehicle, and that is especially useful for the people sitting in the rear. That, of course, includes functions such as digital keys, stored vehicle settings, preferences, music control, AC control, seats adjustment, seats ventilation, navigation. I could go on and on and on. The list is very long but the list does not stop here, and it probably will never stop because new functions can always be added on later through the OTA service that is available with this platform. All this is made possible because of the synchronization between our UI, centralized E/E architecture, and the platform. Again, it is all about building up to the user experience that we like to offer. Last, but not least, of this vehicle are the seats.
The Model D will come with different seats later and different configurations, but these luxurious second-row seats are part of our 33 speaker sound package, allowing for a very relaxed riding position with the legs up and the backrest all the way down. It makes you feel that you're almost floating with zero gravity, and that is something we call traveling in comfort and style. As for the third row, we understand that there are times where you need the cargo space more than the seven seats, so they can be folded away, creating a full capacity of 1,130 L, like you see here. That is the Model D for now. With the developments it will still go through, we urge ourselves to make it a product that is as much as possible focused on the user.
The Model D stands for a dedication, a dedication of the entire Foxconn family to excellence. With that, I thank you all for listening today.
Thank you, Tyse, and all of our morning speakers. Let us now invite back to the stage Foxconn Chairman Young Liu to wrap up the morning session.
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Thank you, Chairman Liu and all our distinguished guests. We invite you to enjoy the specially prepared meals in the dining area. After that, please feel free to explore the exhibition. Thank you for your enthusiastic participation this morning. We look forward to seeing you again next year.
Thank you.