Foxconn, the Taiwan-based contract electronics manufacturer formally known as Hon Hai Precision Industry, said on October 19 that it would pay 115 billion yen (US$727 million) for a 50% stake in Mitsubishi Electric’s automotive-components unit, extending its push into electric vehicle (EV) contract manufacturing.

The companies said Mitsubishi Electric, a Japan-based industrial and electronics company, would contribute electric-powertrain, autonomous-driving, and in-car intelligence technology for Foxconn’s EV platforms.

The unit generated 876 billion yen (US$5.54 billion) in revenue in the year ended March and 54 billion yen (US$341 million) in operating profit.

Mitsubishi Electric expects an impairment charge of about 100 billion yen (US$632 million) this fiscal year.

The transaction is expected to close in October 2027, when the unit would become a 50-50 venture and cease to be a consolidated subsidiary of Mitsubishi Electric.

The deal adds to Foxconn’s broader EV push. The company categorizes EV announcements on its press site and struck a 2021 deal with Lordstown Motors tied to EV manufacturing in Ohio.

🔗 Source: Bloomberg

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