Tech companies bank on autos to offset dismal electronics demand

Analysts warn returns may disappoint as new players rush in

20230220 Foxconn EV

Foxconn, the world's largest contract electronics manufacturer, is cautious about the overall economic outlook but positive on the electric vehicle industry. © Reuters

LAULY LI, Nikkei Asia tech correspondent

TAIPEI -- Tech manufacturers from chipmakers to product assemblers are turning to the electric vehicle market to offset a lingering slowdown in consumer electronics.

But while the shift into cars promises higher margins and new markets for some companies, analysts warn that EVs alone may not be enough to counter sluggish demand for smartphones and other devices.

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