Taipei:Hon Hai Precision Industry Co., a major Taiwan-based manufacturing company, has announced an agreement to acquire a 50 percent stake in Mitsubishi Electric Mobility Co. from Mitsubishi Electric Corp. This move is aimed at establishing a partnership to co-operate an automotive equipment business.
According to Focus Taiwan, Hon Hai, known globally as Foxconn, will invest 115 billion Japanese yen (approximately US$728 million) through its subsidiary Lin Yin International Investment Co. to secure the stake in Mitsubishi Electric Mobility. The completion of this transaction is contingent upon meeting various contractual conditions, including obtaining necessary approvals and clearances from authorities under antitrust and other applicable laws.
The companies anticipate finalizing the transaction by October 1, 2027. Post-acquisition, Hon Hai and Mitsubishi Electric will jointly operate Mitsubishi Electric Mobility. The collaboration aims to merge Mitsubishi Electric Mobility's technological capabilities in electric powertrains, software, and vehicle control with Hon Hai's strengths in market deployment.
Over the medium to long term, the partnership seeks to promote Japanese technology and quality on a global scale, enhancing the value of products "Made in/by Japan" and showcasing new possibilities for Japanese manufacturing.
Hon Hai's move aligns with its "3 plus 3" business diversification strategy, which emphasizes expansion into electric vehicles, robotics, and digital health care, supported by core technologies such as artificial intelligence, semiconductors, and communications.
