News
Mitsubishi Electric to accept 50% capital investment from Foxconn for automotive business
Tuesday, March 17, 2026 at 10:32 AM
Mitsubishi Electric is in final negotiations to accept a 50% capital investment from Foxconn for its automotive parts business. This move signals a significant shift in the automotive supply chain and power electronics landscape as the companies look to integrate manufacturing capabilities.
Context
Taiwan's Foxconn (Hon Hai Precision Industry) is reportedly finalizing a deal to acquire a 50% stake in Mitsubishi Electric's automotive equipment business. This move follows a strategic restructuring by the Japanese conglomerate, which previously spun off its automotive unit into a standalone subsidiary to improve profitability and agility. For Foxconn, the investment marks a major breakthrough in its quest to become the "Android of EVs," providing the manufacturing giant with deep access to Japan’s high-barrier automotive supply chain.
This partnership expands a deepening alliance between the two firms, following their January 2026 joint venture to manufacture electric buses and a November 2025 agreement on AI data center solutions. By integrating Mitsubishi Electric’s expertise in power semiconductors and traction inverters with Foxconn’s MIH open platform and contract design services, the duo aims to accelerate the production of software-defined vehicles. The deal is strategically timed as Mitsubishi Electric consolidates its global operations to focus on high-growth sectors like factory automation and power devices.
Sources (10)
Mitsubishi Electric Signs MoU with Hon Hai Precision ...Mitsubishi Electric Signs MoU with Hon Hai Precision Industry for Global Alliance in AI Data Center Solutions | MITSUBISHI ELECTRIC UNITED STATESEV - Hon Hai Technology GroupFoxconn and Mitsubishi Fuso to jointly manufacture EV buses in Japan - Nikkei AsiaUpdate on Disclosed Matter: Mitsubishi Electric’s Execution of the Company-split Agreement to Transfer Automotive-equipment Business to Newly Incorporated Subsidiary as Part of RestructuringFoxconn enters Japan through MFTBC e-bus venture | Automotive World %Foxconn scores first global OEM deal with EV for Mitsubishi - Automotive NewsMitsubishi Electric Splits to Form New Melco Automotive Equipment Business
Related Companies
Mitsubishi Electric
6503
Foxconn
2317