Foxconn and Mitsubishi Electric explore JV in automotive equipment
Hon Hai Precision Industry, otherwise known as Foxconn, and Mitsubishi Electric have signed a memorandum of understanding to explore a strategic alliance centred on Mitsubishi Electric's automotive equipment business.
Under the MOU, the two companies will begin discussions toward a joint operation structure that would see Foxconn acquire a 50% stake in Mitsubishi Electric Mobility Corporation, Mitsubishi Electric's dedicated automotive mobility subsidiary.
The agreement remains exploratory. Both parties have emphasised that any formal conclusion is contingent on reaching mutual agreement on commercial terms, with final arrangements subject to the outcome of negotiations and relevant regulatory approvals.
No timeline for concluding discussions has been disclosed.
The move would mark another step in Foxconn's push into the automotive sector, where the world's largest EMS provider has been expanding its ambitions beyond its core consumer electronics manufacturing base. For Mitsubishi Electric, a partnership with Hon Hai would bring in a manufacturing partner with unmatched global scale in electronics production.
