Foxconn is investing in Mitsubishi Electric Mobility

Foxconn is acquiring half of Mitsubishi Electric Mobility, a supplier under Mitsubishi Electric’s umbrella. This creates a 50:50 joint venture aimed at providing platforms for electric vehicles, power electronics, and autonomous driving systems — initially focusing on Japan and later globally.

Taiwanese contract manufacturer Foxconn is entering the Japanese supplier’s market through its subsidiary Lin Yin International Investment. Under the now-finalized agreement, Mitsubishi Electric will transfer 50 percent of its shares in its subsidiary Mitsubishi Electric Mobility to Lin Yin. The purchase price is expected to be 115 billion yen, equivalent to around 650 million euros. This amount is based on an assumed enterprise value of 320 billion yen (about 1.8 billion euros) and an equity value of 230 billion yen (1.3 billion euros). The latter was used as a benchmark for the purchase price and divided by two.

The partners still need to obtain a number of approvals. They expect to finalize the deal by October 1, 2027. After that, Mitsubishi Electric and Foxconn aim to “develop next-generation mobility solutions through their joint efforts under Mitsubishi Electric Mobility, thereby strengthening the sustainable growth of Japan’s automotive industry.”

According to the initiators, this collaboration “combines Mitsubishi Electric Mobility’s technological and R&D capabilities—especially in electric powertrains, software, and vehicle control—with Hon Hai Precision Industry’s speed, scalability, and other strengths for market entry.” Hon Hai Precision Industry is another name for Foxconn.

The partners see electric vehicle platforms developed in Japan and subsequently offered to third parties as a key driver for their business. Initially, the strategic collaboration is focused on Japan, but Mitsubishi Electric and Foxconn aim to expand “their Japanese technologies” to global markets in the medium to long term.

Mitsubishi Electric Mobility, along with its parent company Mitsubishi Electric, is located in Chiyoda-ku, a district of Tokyo. The supplier currently employs around 6,400 workers. The Japanese company cites the development and production of automotive components, software, and services as its current business focus.

Mitsubishi Electric states that its subsidiary could grow into a company with sales of 1 trillion yen (equivalent to 5.63 billion euros) through Foxconn’s involvement and the resulting strengthening of its core business. It adds, “This strategic alliance will strengthen Japan’s industrial base and support the sustainable growth of the domestic automotive industry by providing high-quality, in-Japan developed or manufactured platforms for electric vehicles.”