Gasgoo Munich- Hon Hai Precision and Mitsubishi Electric have jointly announced a final agreement to form a strategic alliance around their automotive equipment businesses.
Hon Hai plans to acquire a 50% stake in Mitsubishi Electric Mobile Co., Ltd. through its investment arm, Lin Yin. The transaction is expected to reach 115 billion yen, or approximately 4.87 billion yuan.
Mitsubishi Electric Mobile handles the group's automotive equipment operations, producing components such as in-vehicle motors, electronic control units, and car electronics. Once the transaction closes, both Mitsubishi Electric and Hon Hai will hold equal 50% stakes and run the company together.
Image Source: Hon Hai Group
Hon Hai said the partnership will operate under a "Made in/by Japan" philosophy. Together, they aim to develop next-generation mobility platforms focused on electrification and intelligence to support the sustainable growth of Japan's auto sector. For its part, Mitsubishi Electric looks to leverage Hon Hai's expertise in electronics manufacturing and electrification to sharpen cost controls and speed up product development cycles.
This marks another expansion for Hon Hai into the auto components sector. The company has been steadily penetrating the automotive supply chain through contract manufacturing, electric platforms, and battery investments. With this deal, it is extending its reach into Japan's traditional automotive parts ecosystem.
