Foxconn acquires stake in Mitsubishi Electric Mobility
Foxconn is taking over half of Mitsubishi Electric Mobility, a supplier under the Mitsubishi Electric umbrella. This creates a 50:50 joint venture that will provide platforms for electric vehicles, power electronics, and autonomous driving systems - initially focusing on Japan, but with global ambitions.
The Taiwanese contract manufacturer Foxconn is acquiring a stake in the Japanese supplier Mitsubishi Electric through its subsidiary Lin Yin International Investment. Under the now-finalised agreement, Mitsubishi Electric will transfer 50 per cent of its shares in its subsidiary, Mitsubishi Electric Mobility, to Lin Yin. The purchase price is expected to amount to 115 billion yen, equivalent to approx. €650 million euros. This sum is based on an assumed company value of 320 billion yen (~€1.8 billion euros) and an equity value of 230 billion yen (~€1.3 billion). The latter was used as the benchmark for the purchase price and divided by two.
The partners still need to obtain a series of approvals. They expect to close the deal on 1 October 2027. Afterwards, Mitsubishi Electric and Foxconn aim to “develop next-generation mobility and thereby strengthen the sustainable growth of the Japanese automotive industry” under the umbrella of Mitsubishi Electric Mobility.
According to the initiators, the cooperation “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”. Hon Hai Precision Industry is another name for Foxconn.
The partners see an important lever for their business in EV platforms, which are to be developed in Japan and then offered to third parties. Initially, the strategic cooperation is focused on Japan, but Mitsubishi Electric and Foxconn intend to roll out their Japanese technologies in global markets in the medium to long term.
Mitsubishi Electric Mobility, like its previously sole parent company Mitsubishi Electric, is based in Chiyoda-ku, a district of Tokyo. The supplier currently employs around 6,400 people. The Japanese company states that its previous business focus has been on the development and manufacturing of automotive components, software and services.
Mitsubishi Electric states that, through Foxconn’s investment and the resulting strengthening of its core business, its subsidiary could grow into a company with sales of 1 trillion yen (equivalent to €5.63 billion euros). It adds: “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.”