Hon Hai Precision Industry (Foxconn) and Mitsubishi Electric Reach Final Agreement on Strategic Alliance for Joint Operation of Automotive Equipment Business
Will leverage “Made in/by
Japan” brand to support sustainable growth of Japanese automotive industry16 October 2026, Taipei, Taiwan, Tokyo
Japan – Lin Yin International Investment Co., Ltd. (Lin Yin), an investment
management subsidiary of Hon Hai Precision Industry Co., Ltd. (Hon Hai
Precision Industry) (Foxconn), and Mitsubishi Electric Corporation (Mitsubishi
Electric) announced today that they have formalized a strategic alliance for the
joint operation of an automotive equipment business. Through the alliance, the
companies aim to develop next-generation mobility and thereby strengthen the
sustainable growth of the Japanese automotive industry.
Under the
agreement, Mitsubishi Electric will transfer to Lin Yin 50% of its stake in
Mitsubishi Electric Mobility Co., Ltd., which handles Mitsubishi Electric’s
automotive equipment business, after which the two co-owners will jointly
operate Mitsubishi Electric Mobility. The share transfer price is expected to
be JPY 115.0 billion. The share transfer agreement establishes an enterprise
value of JPY 320.0 billion and an equity value of 230.0 billion for the target
business. The transfer price corresponds to a 50% stake to be transferred based
on the equity value. Subject to the satisfaction of contractual conditions,
including obtaining required approvals and clearances from relevant authorities
under competition laws and other applicable laws and regulations, the share transfer
is expected to be completed on October 1, 2027.
The
joint-operating arrangement will combine Mitsubishi Electric Mobility’s
technological and developmental capabilities, particularly in electric
powertrains, software and vehicle control, with Hon Hai Precision Industry’s
speed, scale and other strengths in market deployment.
By providing
high-quality electric-vehicle platforms (basic structures) developed in Japan,
the companies expect to contribute to the widespread adoption and advancement
of next-generation mobility. The alliance will translate advanced technologies
and quality achieved through high-level Japanese manufacturing into new value
for mobility. In turn, this is expected to strengthen Japan’s industrial base
and support the sustainable growth of the domestic automotive industry. In
addition, over the medium to long term, the companies aim to expand Japanese
technology and quality to global markets as well as further enhance the value
of “Made in/by Japan” and demonstrate new possibilities for Japanese
manufacturing to the world.
About Hon
Hai
Hon
Hai Technology Group (Foxconn) (TWSE:2317) is the world’s largest electronics
manufacturer and leading technology solutions provider, ranking 23rd in Fortune
Global 500. In 2025, revenue totaled TWD8.1 trillion (approx. USD260 billion).
The Group’s market share in electronics manufacturing services (EMS) exceeds
40% and covers four major product segments: smart consumer electronics; cloud
and networking; computing; and components and other. Operating over 240
campuses across 24 countries, Foxconn is one of the world’s largest employers
with approx. 1 million employees during peak manufacturing season. We are
committed to sustainability in the manufacturing process and serving as a
best-practice model for global enterprises. The Group is guided by its 3+3+3
strategy, actively investing in industries of electric vehicles, digital
health, and robotics; in technologies of artificial intelligence,
semiconductors and next-generation communications; in intelligent platforms of
Smart Manufacturing, Smart EV and Smart City. Foxconn is dedicated to becoming
a comprehensive, world-class enterprise, with AI as its core driving force.
Learn more at www.foxconn.com/en-us
About the
Mitsubishi Electric Group
Guided
by its corporate philosophy, Mitsubishi Electric Corporation (TOKYO: 6503) places sustainability at
the core of its operations and values stakeholder trust—encompassing society,
customers, shareholders and employees. In pursuing profitability, capital
efficiency and growth, Mitsubishi Electric works closely alongside customers to
develop value-added solutions that address today’s complex challenges while
enhancing the company’s sustainable corporate value.
Founded
in 1921, Mitsubishi Electric has over a century of experience in delivering
reliable, high-quality products and solutions. With over 200 group companies
and approximately 150,000 employees worldwide, the company is a recognized
global leader in manufacturing, marketing and selling electrical and electronic
equipment and systems across a broad range of sectors, including public utility
systems, energy systems, defense and space systems, factory automation systems,
automotive equipment, building systems, air conditioning systems & home
products, digital innovations, and semiconductor & devices.
Mitsubishi
Electric recorded consolidated revenue of 5,894.7 billion yen (U.S.$ 36.8
billion*) in the fiscal year that ended on March 31, 2026. For more
information, please visit www.MitsubishiElectric.com
*JPY
160=USD 1, the approximate rate on the Tokyo Foreign Exchange Market on March
31, 2026
2026/10/16