Foxconn Acquires Stake in Mitsubishi Electric's EV Components Business

Hon Hai Precision Industry Co., Ltd. will invest 115 billion yen to acquire a 50% stake in Mitsubishi Electric's automotive components business, with the goal of building the business into a segment with revenue exceeding 1 trillion yen. The two companies said at a press conference in Tokyo on Monday that Mitsubishi Electric will provide electric drive, autonomous driving, and in-vehicle intelligence-related technologies to the electric vehicle platform developed by Hon Hai. This cooperation allows Foxconn to further secure a foothold in the automotive industry as it expands its contract manufacturing model into the electric vehicle sector; it also finds a partner for Mitsubishi Electric to help scale its automotive components business. The two sides plan to combine Mitsubishi Electric's long-accumulated automaker customer resources with Foxconn's rapid development model, expanding the business scope from traditional automotive components to electric vehicle and autonomous driving platforms.