Hon Hai Precision Industry (TPE:2317) will purchase a 50% stake in Mitsubishi Electric Mobility from Japan's Mitsubishi Electric Corp. (TYO:6503) for 115 billion yen, the Taiwanese contract electronics manufacturer said in a Friday news release.
Foxconn's investment management subsidiary Lin Yin International Investment will purchase the stake from Mitsubishi Electric's automotive equipment business. Completion is set for Oct. 1, 2027.
The purchase will set Mitsubishi Electric Mobility's enterprise value of 320 billion yen and an equity value of 230 billion yen, Foxconn said in its news release.
Following completion, the two co-owners will jointly operate Mitsubishi Electric Mobility, which is expected to grow into a 1-trillion-yen company following the acquisition.
The purchase will combine the Japanese company's technological and developmental capabilities across electric powertrains, software and vehicle control, and Foxconn's speed and scale, the two companies said.
The two companies started mulling joint operations in April to expand into the automotive equipment sector. In November 2025, both Foxconn and Mitsubishi signed a memorandum of understanding for their artificial intelligence data center alliance.
Mitsubishi Electric is expected to record an impairment loss of about 100 billion yen in the fiscal year ended March 31, 2027, from the purchase.
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