Foxconn buys 50% of Mitsubishi Electric Mobility

A taiwanese Hon Hai (Foxconn), the world's largest manufacturer of electronic products, will acquire 50% of Mitsubishi Electric Mobility for 115,000 million yen (about €651 million), today announced companies.

The joint venture resulting from the acquisition by Lin Yin, a subsidiary of the Taiwanese company, will seek to “facilitate the creation of electric vehicle platforms developed from Japan,” Foxconn and Mitsubishi Electric said today in a joint presentation in Tokyo.

This stock sale agreement, anticipated on Friday by Foxconn and which both companies expect to conclude in October next year, also aims to boost the joint company's sales to a billion yen (5,640 million dollars) in the fiscal year 2030 and move from the adjusted operating margin of 5.7% in 2025 to 9.3%.

“By providing platforms for high-quality electric vehicles developed in Japan, companies expect to contribute to the widespread adoption and advancement of next-generation mobility,” Foxconn said in a statement.

According to the Taiwanese company, the joint operation agreement will combine the technological and development capabilities of Mitsubishi Electric Mobility, in particular in electrical propulsion, software and vehicle control systems, with the scale of Hon Hai.

Foxconn, a manufacturer of various products from North American Apple, has shown interest in the automotive sector in recent years: in 2020, it stated that it intended to become a supplier of components and services for 10% of electric vehicles worldwide by 2027 and, in mid-2024, began to build a factory of “production tests” of this type of vehicles in central China.