Hon Hai Precision Industry, known as Foxconn, has agreed through its investment subsidiary Lin Yin International Investment to acquire 50 percent of Mitsubishi Electric Mobility, the automotive equipment subsidiary of Mitsubishi Electric, for 115 billion yen, about 727 million dollars. The agreement values the business at an enterprise value of 320 billion yen and an equity value of 230 billion yen, and the two companies will operate it as an equal joint venture after completion, expected on October 1, 2027.
Mitsubishi Electric Mobility is not a pure electric vehicle company. It is a tier one supplier making alternators, ignition components and radar sensors alongside electric powertrains, software and vehicle control systems, the electronic control technology Foxconn’s EV chief strategy officer Jun Seki called the most attractive part of the deal. The partners plan to develop EV platforms in Japan for Japanese automakers first, then sell globally, targeting more than 1 trillion yen of revenue in the fiscal year starting April 2030.
The price carries a cost for the seller. Mitsubishi Electric expects an impairment charge of about 100 billion yen in the current fiscal year in connection with the transaction, and the unit generated about 876 billion yen of revenue and 54 billion yen of operating profit in the year ended March 2026, according to company figures reported by Bloomberg.
For Foxconn this is the anchor tenant strategy applied to cars: rather than building an EV business from zero, it buys equal control of an incumbent supplier with Japanese automaker relationships already in place, and pairs Mitsubishi’s control technology with its own manufacturing speed and scale. Neither partner holds a majority in the joint venture, so platform decisions, capital spending and customer priorities will require agreement, which is the governance risk the October 2027 closing timetable now has a year to work through.